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Do I need to pay any sales tax / VAT on commodity derivative transaction?

April 26, 2017commodity derivative pay transaction VAT

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Do I need to pay any sales tax / VAT on commodity derivative transaction?

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If you square off your trades before expiry of the contract, there is no Sales Tax / VAT payable. But if you take delivery of the commodity, sales tax / VAT will be applicable as per the existing government rules.