Gentlemen,
pl let me know if in case of business of F& O the turnover figure can be taken as the one certified by the broker for STT , if not why.
pl let me know the via media as the record for each script is too voluminous and not maintained. Net profit or loss in the year with broker is booked a.c tallied with broker
pl advise
vikram
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3 comments:
Broker is not the certifing authority to certify the turnover
amount.
Turnover for the purpose of Tax Audit and for the purpose of STT is
not the same.
Any way assessee will have to maintain the books of accounts, as it
is required for the purpose of audit,since we are auditing books of
accounts.
Books of accounts are also rquired for the purpose of arriving at
correct income. Books of accounts should be maintained in such a way
that correct profit can be arrived at from the books of accounts.
Books of accounts can be maintained in such a way that correct
profit can be arried at, even without recording the turnover of the
transction ( i.e we can follow some short cut mathod )
But however we will have to mention turover at various places in the
Audit Report,
We will have to mention net profit ratio in 3CD
According to me Proper Books will have to maintained, It would be
better if the books are maintained in such a way that, Books reflect
the turnover of the business( even after followinig short cut
methods). However Turnover certified by broker or brokers ( when
there are more than one brokers) taken be considered for various
other purposes.
Broker is not the certifing authority to certify the turnover
amount.
Turnover for the purpose of Tax Audit and for the purpose of STT is
not the same.
Any way assessee will have to maintain the books of accounts, as it
is required for the purpose of audit,since we are auditing books of
accounts.
Books of accounts are also rquired for the purpose of arriving at
correct income. Books of accounts should be maintained in such a way
that correct profit can be arrived at from the books of accounts.
Books of accounts can be maintained in such a way that correct
profit can be arried at, even without recording the turnover of the
transction ( i.e we can follow some short cut mathod )
But however we will have to mention turover at various places in the
Audit Report,
We will have to mention net profit ratio in 3CD
According to me Proper Books will have to maintained, It would be
better if the books are maintained in such a way that, Books reflect
the turnover of the business( even after followinig short cut
methods). However Turnover certified by broker or brokers ( when
there are more than one brokers) taken be considered for various
other purposes.
Dear Vikrambhai
>
> For the purpose of our audit, the turnover figure will
> always be as recorded in the books of accounts as we
> are auditing our client's books and not broker's books
> - Broker's certificate can be a good tool for cross
> checking.
>
> We have already discussed in the meetings that turover
> = profit + loss occured in the derivatives.
>
> The entry passed should be based on the contract notes
> received from brokers and not the certificate (what if
> certificate contain any error?). Although the contract
> notes are received for full value of scripts sold or
> purchased, entry is passed only for the difference.
>
> The assessee has to maintain the details even if the
> transactions are voluminous. How will we audit in the
> absence of details? Contract notes will always be
> available for our verification.
>
> However, if the proper records are not maintained (and
> client is not willing/able to prepare in the desired
> timeframe) and we are satisfied with the broker's
> record, still we shall put an appropriate remark in
> Form 3CB (assuming non-company assessee).
>
> dipesh
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