On 1 January 21y9, ZL entered into a forward contract for the purchase of raw materials to be used in its business to guard against loss through price fluctuations. On thedate of maturity of the forward contract, ZL did not take the delivery of the raw materials butthe contract was settled by making a payment of Rs. 500,000. Required: Explain the taxabilityof the above transactions

Answer rating: 100% (QA)

The gainloss arising from this transaction is allowed ... View the full answer