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How is STT applied?

Open uri20170510 32134 7ezpi6?1494421819 jaggu asked almost 3 years ago

Hi I am preparing for CA exam. May I know, How is STT applied?

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4 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 narahari answered over 2 years ago

--Securities Transaction Tax (STT) is a tax payable in India on the value of securities (excluding commodities and currency) transacted through a recognized stock exchange. The tax is not applicable on off-market transactions or on commodity or currency transactions. The original tax rate was set at 0.125% for a delivery-based equity transaction and 0.025% on an intra-day transaction. --As per the Finance Act 2004, and modified by Finance Act 2008 (18 of 2008) STT on the transactions executed on the Exchange shall be as under:

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Chirag answered over 2 years ago

**What is the Securities Transaction Tax?** The Securities Transaction Tax was introduced by Chapter VII of the Finance Act (No.2) Act, 2004. STT is a tax being levied on all transactions done on the stock exchanges. Securities Transaction Tax is applicable on purchase or sale of equity shares, derivatives, equity-oriented funds and equity-oriented mutual funds. **How is STT applied?** STT is applied as following (effective from June 1st, 2005): For transactions in a recognised stock exchange in India: a) Purchase/Sale of equity shares, units of equity oriented mutual fund (delivery based) -- 0.10% b) Sale of equity shares, units of equity oriented mutual fund (non-delivery based) -- 0.02% c) Sale of derivative -- 0.01% Sale of unit of an equity oriented fund to the mutual fund -- 0.2%

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 HIMANSHU answered almost 3 years ago

Hie -Securities Transaction Tax (STT) is a tax payable in India on the value of securities (excluding commodities and currency) transacted through a recognized stock exchange. The tax is not applicable on off-market transactions or on commodity or currency transactions. The original tax rate was set at 0.125% for a delivery-based equity transaction and 0.025% on an intra-day transaction. --As per the Finance Act 2004, and modified by Finance Act 2008 (18 of 2008) STT on the transactions executed on the Exchange shall be as under: Sr.No. Taxable securities transaction New rate from 01.06.2013 Payable by a Sale of an option in securities 0.17% Seller b Sale of an option in securities, where option is exercised 0.125% Purchaser c Sale of a futures in securities 0.01% seller

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 CA Sandeep Bohra answered almost 3 years ago

--Securities Transaction Tax (STT) is a tax payable in India on the value of securities (excluding commodities and currency) transacted through a recognized stock exchange. The tax is not applicable on off-market transactions or on commodity or currency transactions. The original tax rate was set at 0.125% for a delivery-based equity transaction and 0.025% on an intra-day transaction. --As per the Finance Act 2004, and modified by Finance Act 2008 (18 of 2008) STT on the transactions executed on the Exchange shall be as under: Sr.No. Taxable securities transaction New rate from 01.06.2013 Payable by a Sale of an option in securities 0.17% Seller b Sale of an option in securities, where option is exercised 0.125% Purchaser c Sale of a futures in securities 0.01% seller

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