Notes 10 - Notes on clauses - Miscellaneous - Finance Bill, 2013

Miscellaneous Clause 125 of the Bill seeks to amend section 98 of the Finance (No. 2) Act, 2004 relating to charge of securities transaction tax. It is proposed to amend the Table given under the said section which specifies the rates at which the securities transaction tax shall be charged. The proposed amendments seek to reduce the rates of securities transaction tax from 0.1 per cent. to zero per cent. in respect of the purchase of units of an equity oriented fund entered into in a recognised stock exchange where the contract for the purchase of such unit is settled by actual delivery. It is further proposed to insert a new serial number 2A and the entries relating thereto, so as to reduce the rate of securities transaction tax from 0.1 per cent. to 0.001 per cent. in respect of the taxable securities transaction of sale of unit of an equity oriented fund of the nature referred to under column (2) of the said Table. It is also proposed to reduce the rate of securities transaction tax from 0.017 per cent. to 0.01 per cent. in respect of taxable securities transactions of derivatives of the nature referred to under the said column (2), in item (c), against serial number 4. It is also proposed to reduce the rate of securities transaction tax from 0.25 per cent. to 0.001 per cent. in respect of taxable securities transactions of the units of equity oriented fund of the nature referred to under column (2) against serial number 5. This amendment will take effect from 1st June, 2013