TURNOVER FOR MCX COMMODITY TRADING

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  1. Vijay Soundappan

    Vijay Soundappan New Member

    SIR,

    IAM DOING COMMODITY TRADING BIZ IN MCX BOTH INTRA DAY AND SOMETIME HOLDING THE CONTRACT SOME DAYS AND CLOSING IT. MY DOUBT REGARDING.
    1. IS THE BUSINESS FULLY TREATED ( BOTH INTRA DAY AND DELIVERY ) AS BUSINESS INCOME OR SPECULATIVE BUSINESS ?
    2. IF IT IS A BUSINESS, WHAT IS THE ACTUAL TURNOVER HERE, IS THE ACUTAL SALE VALUE OR THE NET AMOUNT
    3. IF IT IS A BUSINESS CAN I CLAIM FURTHER BUSINESS EXPENSES AS LIKE SALARY TO STAFF, ADVISORY CHARGES, MOBILE TRAVELLING ETC.,

    PLS CLARIFY
     
  2. ZED

    ZED Well-Known Member

    Well both of them are business income, one is speculative business and other is non-speculative.

    Intra day transactions constitute speculative business.


    In respect of speculative transactions (intra day) , it is the aggregate of the +ve values and the -ve values. For eg if loss is 50,000 and profit is 70,000 , then turnover will be 120,000 for intra day business.


    Yes, if the expenses are wholly and exclusively for the purpose of business and you have supporting of the bill.



    [S.44AD can also be availed if turnover is upto 1 crore (2 crore from F.Y 16-17) , in that case profit shall be deemed to be 8% of the turnover and all expense shall be deemed to have been allowed.
    To declare profit less than 8% , audit of accounts would be required.]
     
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