Question ID : 845

Deivative Tansactions

Dear Sir,

Fom curunt year 2005-06 dervitaive transactions future options are to be conred as delivery baed bussess and not a specutive bussess.
If it is delivery based normal bussess, then what amount of transacton is to be treated as turnover? Total amount of transaction or mearly difference amount ? Suposse 15 lots of Reliance purchase future for one month at total Rs. 4000 today and the same lots are sold after one week at total Rs. 4600000 then what is the amount of turnover ? Rs. 4600000 or Rs.100000 (Rs. 1 kh may come by differnce of daily marg) ? If total amount of Rs.4600000 is to be conred as turnover then audit under section 44AB is required ? '

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