Taxation issues for members

Q: What are the taxation consequences of trading on the Exchange?
A: Members should treat 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. Trading is not designed to (and should not) be used as a means of tax evasion or avoidance. Members should treat sales and deductible purchases as they would treat a cash transaction. Opening a Member account is similar to opening another bank or credit card account.

Q: In what year is taxable?
A: earned from trade sales should be included in income for the tax year in which they are credited to the Member's account.

Q: How is recorded in the books of accounts?
A: As Receivables for Sales transactions and as Payables for Purchases.