Changes proposed on the rate at which the Securities Transaction Tax (STT) is levied?

[Amit Gupta, CA, MBA]

The rates of Securities Transaction Tax are proposed to be raised as follows with effect from April 1.

· On purchase of an equity share in a company or a unit of an equity oriented fund, where:

The transaction of such purchase is entered into in a recognised stock exchange; and the contract for the purchase of such share or unit is settled by the actual delivery or transfer of such share or unit.

· STT at the rate of 0.125 per cent is payable by the purchaser.

On sale of an equity share in a company or a unit of an equity oriented fund, where:

The transaction of such sale is entered into in a recognised stock exchange; and the contract for the sale of such share or unit is settled by the actual delivery or transfer of such share or unit.

· STT at the rate of 0.125 per cent is payable by the seller

On sale of an equity share in a company or a unit of an equity oriented fund, where:

The transaction of such sale is entered into in a recognised stock exchange; and the contract for the sale of such share or unit is settled otherwise than by the actual delivery or transfer of such share or unit.

· STT at the rate of 0.025 per cent is payable by the seller.

On sale of a derivative, where the transaction of such sale is entered into in a recognised stock exchange:

· STT at the rate of 0.017 per cent is payable by the seller.

On sale of unit of an equity-oriented fund to the Mutual Fund.

· STT at the rate of 0.25 per cent is payable by the seller.

Regards

Amit Gupta

B.Com ,Chartered Accountant , MBA(Finance)

Address :-648 Guru Ram Dass Nagar , Delhi-110092

E-mail :[email protected]

Ph-9810440459 , 22449686