Transaction in respect of commodity derivatives to be treated as non speculative transaction only when such transaction is liable to CTT (Section 43(5)] [W.r.e.f. A.Y. 2014-15]
The existing provisions contained in clause (5) of section 43 define the term
speculative transaction. The proviso to the said clause (5) excludes certain category
of transactions as speculative transactions.
Finance Act, 2013 made a provision for levy of commodities transaction tax on
commodity derivatives in respect of commodities other than agricultural
commodities. As a consequence to the levy of commodities transaction
tax, clause (e) was inserted in the proviso to section 43(5) to provide that
eligible transaction in respect of trading in commodity derivatives carried
out in a recognised association shall not be considered as speculative
transaction. Vide Circular No. 3 dated 24-01-2014 explaining the provisions
of the Finance Act, 2013, it was clarified that the eligible transaction shall include
only those transactions in commodity derivatives which are liable to commodities
transaction tax.
Accordingly, clause (e) of the proviso to the said clause (5) has been amended so as to provide that eligible transaction in
respect of trading in commodity
derivatives carried out in a recognised association and chargeable to commodities transaction tax under Chapter VII of the
Finance Act, 2013 shall not be considered to be a speculative transaction.
.