Commodity Tax Career Guide and Counseling

Question: Would you prefer to have more commodity tax than an income tax? I kind of would. Why shouldn't I? for an example:raised taxes on cigs... well you dont HAVE to by cigarettes,if you do, you know how much they cost. I would rather have more commodity tax than have more income taxes because you can chose what you want to buy and know ahead of time how much it is. What is your opinion? texas joe... exactly WHO is the moron?????

Answer: i would too...

Question: If a Hong Kong resident setups a BVI to trade commodity futures in NYMEX, what tax does he pay? profit tax? If a Hong Kong resident setups a BVI to trade commodity futures in NYMEX, what tax does he pay? profit tax?

Answer: Only tax I know of is capital gains tax.

Question: can an increase in commodity tax lead to unemployment?

Answer: only if that increase is going towards the failure line. so no.

Question: which income tax form is applicable for income from commodity transactions (mcx delivery not taken)? which income tax form is applicable for income from commodity transactions (mcx delivery not taken)

Answer: If your income is from trading, not delivery based, then it falls under the category ' Profit from Business' & you have to fill ITR-4.

Question: for local sales vat 4% for other state what is the tax percentage? ours commodity tax is 4%, for other state if c form issued what is the percentage of tax, if c form not issued what is the percentage ? (i think for dealers if c form issued tax is 2% other wise 4%), (for manufacture if commodity sales is 12.5% then if c form issued cst will be 2% other wise 12.5%) is it right or wrong

Answer: yes, it is right for your commodity tax it is right . it is depend upon the commodity tax, if 4% cst will be 2% cst should be provided othervise it it 4%, for manufacturing goods if cform issued cst should be 2% otherwise 12.5% is correct

Question: What is the best/easiest software to use for tax preparation if you are a commodities trader? I used Turbo Tax in the past when I only traded stocks, but since I now trade commodities also it does not seem to be as easy and I could not figure out how to make the entries corrrectly. I even asked one of their techs and I don't think they understood how to enter commodities trades correctly.

Answer: I think you can still use Turbo Tax. Just create an excel spreadsheet with the usual information (purch date, cost, sales date, sales proceeds, short term capital gain (loss), and long term capital gain (loss) and name the spreadsheet "Attachment A." Subtotal your short term transactions and long term transactions separately, then a final total for both. Then go into Turbo Tax and on Schedule D, just put one line item for all the commodities. Call it, "Please see Attachment A," put in the total gross sales proceeds and cost for the short term transactions, then do another line with the same exact description but only put in the long term transactions. These two line items on the tax return then must match your Attachment A. Now this is where it might get tricky. I don't know if in Turbo tax, you can tell it whether the software that the gain is long term and short term. It should. Oh, if it works, be sure to attach the excel schedule as the last page to the tax return.

Question: How much tax I need to pay for commodity income? How much tax I need to pay for Income from commodity trading ? Lets say I bought 1kg gold at price 1lacs and sold it at 1.2 lacs, so my profit is 20,000. Is this income fall under casual income or income from undisclosed source? I tried official site but all were i vein... If somebody could help me would be very appreciated..

Answer: if this gold has been bought in commodites market then it is a income derived from speculation, so you need to take 33% of the profit derived, but you can also claim expenses and other stuff for it. In case of physical holding of gold, you will be considered as in short term if you have held it under your posession for less than 3 years and you will have to give the applicable tax for it, you need to consult a CA to resolve this issue.....

Question: Are there any countries that don't have a tax based on home ownership? I am living in a country that doesn't have a tax collected by our government that is based on home ownership. Some countries call it a community charge I think. Our government tries to raise revenue by taxing all other commodities very heavily. I am interested to know if there are other countries in the developed world that don't have a home/house ownership based tax.

Answer: America, we will be glad to have you.

Question: Should the US Government impose a tax on purchases of Oil as a commodity? I don't mean tax gas. I mean impose a fee on each purchase of oil on the markets. Make it painful for an investor to buy oil as a commodity. Create a financial incentive for investors to invest in other commodities or stocks or bonds. If they want to still invest in Oil, make it seem obvious that they get to keep more of a return investing in oil companies rather than the oil itself. Headline news reported today that it costs $50 to produce a barrell of Oil. I would think Oil should be selling at around $55-75 a barrell. Oil was selling at $139 a barrell 2 days ago. Headline news says speculation on barrells of Oil as commodities have driven up the cost of oil, not shortages in production or refinement capacity. I hope people keep responding, but I will say Greg has just given a pretty amazing answer. Bud - you really should re-read the initial post.

Answer: Brokers already charge a fee for taking out positions. And you are taxed on the short term gains at regular income tax rates. I think there is a fair argument for increasing the margin requirements for trades when a market overheats like this one has however. Right now, 10.4 million will get you about calls on about 1 million barrels of oil. Simply raising the margin requirements would mean you would need more real money to drive up the apparent demand. And it does not cost 55 dollars to produce a barrel of oil in most locations. Exxon isn't even drilling where the cost of extraction and delivery exceeds 35 dollars a barrel. ---------------- The world's cheapest oil to extract comes from Saudi Arabia and costs $2 a barrel. But that oil, over 8 million barrels a day, is pumped mostly by the Saudi national oil company and is largely off-limits to Western oil firms. For Western firms, it can cost as little as $5 to $7 a barrel to pump the most easily accessible oil from places like Venezuela or Azerbaijan, said Fadel Gheit, a senior energy analyst at Oppenheimer. http://money.cnn.com/2007/11/05/news/com…

Question: To lower the cost of gas, should the US Government impose a tax on purchases of Oil as a commodity? or as someone else suggested increase the margin requirments to make trades on barrels of oil ---forcing indviduals or groups to have more money to get into the oil speculation game. (I am still chewing on that idea. I think companies would still offer ways to work around that.) I obviously don't mean "tax gas" and I am not talking about taxing Oil company's profits as some have --- I think that would be passed on as higher gas prices. Unlike the "winfall profit tax" idea, I am talking about taxing people who really have no role in the production of Oil, therefore the costs of the tax would not be passed on to us. I mean impose a fee on each purchase of oil on the markets. Make it painful for an investor to buy oil as a commodity. Create a financial incentive for investors to invest in other commodities or stocks or bonds. If they want to still invest in Oil, make it seem obvious that they get to keep more of a return investing in oil companies rather than the oil itself. Headline news reported today that it costs $50 to produce a barrell of Oil. Other reports suggest that the cost of a barrel for US Oil companies is much, much lower cost At $50 a barrell, I would think Oil should be selling at around $55-75 a barrell. Oil was selling at $139 a barrell 2 days ago. Headline news says speculation on barrells of Oil as commodities have driven up the cost of oil, not shortages in production or refinement capacity. So why not pass legislation that makes SPECULATION on Oil a ton less lucrative? I am not an economist (probably Obviously to you folks) but I am quite interested in your opinions on what ---if anything --- should be done about the climbing cost of Oil. I mean if you drill more, OPEC will just cut production --- what should be done?

Answer: Most oil is coming into the country from outside the U.S. The US oil companies buy it from OPEC and import it. OPEC isn't going to lower its prices to the oil companies just because the US passes a tax, so it will be US oil companies will pay the tax. Since all the oil companies would have to pay the tax, it would get passed on. As far as oil trading goes...they can just move it out of the U.S. NYMEX is the major futures player in that market now...but traders trade where the cost is less. Make it too expensive, and that business will move to London. Ditto margin requirements. That business can be done anywhere...nothing says it has to be done in the U.S, and your regs won't stop oil speculation...just cost the US the business and jobs. Truth is that there isn't really much that can be done about oil prices. Increases in demand have been outstripping increases in supplies for years. Now we've getting to a point where demand exceeds supply, and there is starting to be a shortage. That's what is causing oil prices to rise. Oil prices are very inelastic, which means that it takes large increases in prices to drop demand a little bit. If prices stay up, people will buy smaller cars, and conserve more, which will start to drop demand more. US demand has actually been dropping for a while. However, emerging countries such as China and India will continue to increase their demand, so the market will remain tight. We may see some short term drops in prices, but the long term trend is going to be higher. Supplies just aren't going up very fast. There are some new fields in Brazil and in Saudi Arabia, but existing fields production declines over time, so it will take significant new discoveries even to keep worldwide production where it is. One of the politicians down in Brazil says one of the fields down there has 32 billion barrels of oil. But the world is using 31 billion barrels a year. ANWR would only be 10 billion barrels...about 4 months of world supply and only about 18 months of US usage...a drop in the bucket, so to speak. Long term, the solution is developing alternative energy sources, but that isn't going to happen right away. We need to develop long range strategies for getting away from oil...maybe with oil prices the way they are now, companies will have an incentive to do that. Last note...I've followed oil since the 70's...OPEC has never really worked. Someone has always cheated. The reason OPEC is working now is because nobody's able to cheat...everyone but Saudi Arabia is running at full production.