jaggu
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Hi I am preparing for CA exam. May I know, How is STT applied?
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narahari
answered
--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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Chirag
answered
**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%
HIMANSHU
answered
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
CA Sandeep Bohra
answered
--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
