Q: What are the taxation consequences of trading on the Exchange? 

A: Members should treat all incomes as they would treat cash income from a tax perspective. The advantages and disadvantages are similar to ordinary cash revenue or expenses. All liabilities related to Sales Tax, Service Tax, Excise Tax etc. would be settled in cash directly by the transacting parties. Members should treat sales and deductible purchases as they would treat in a normal cash transaction. Opening a Member account is similar to opening another bank or credit card account.

Q: In what year are the earnings from the trade on the exchange is taxable? 

A: Earnings from trade sales should be included in income for the tax year in which they are credited to the Member's card account. 

Q: How is it recorded in the books of accounts?  

A: As Receivables for Sales transactions and as Payables for Purchases.

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