CHARGE OF SECURITIES TRANSACTION TAX (STT)

370

CHARGE OF SECURITIES TRANSACTION TAX (STT)

On and from 01.10.2004, there shall be charged a securities transaction tax in respect of taxable securities transaction, at the rates specified, on the value of such transaction and such tax shall be payable by the purchaser or the seller, as may be specified.

The table given below shows the list of transactions on which STT is leviable, the rate of STT and the person liable to pay STT.

 

S.No. Taxable Securities Transaction Rate Payable By
1. Purchase of an equity share in a company or unit of a business trust where

a)      The transaction of such purchase is entered into in a recognised stock exchange and

b)      The contract for the purchase of such share or unit is settled by the actual delivery or transfer of such share or unit.

0.1% Purchaser
2. Sale of an equity share in a company or unit of a business trust where

a)      The transaction of such sale is entered into in a recognised stock exchange and

b)      The contract for the sale of such share or unit is settled by the actual delivery or transfer of such share or unit.

 

 

0.1% Seller
3. Sale of unit of an equity oriented fund where:

a)      The transaction of such sale is entered into in a recognised stock exchange and

b)      The contract for the sale of such unit is settled by the actual delivery or transfer of such share or unit.

 

 

 

0.001% Seller
4. Sale of an equity share in a company or a unit of an equity oriented fund or unit of a business trust, where-

a)      The transaction of such sale is entered into in a recognised stock exchange and

b)      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.

0.025% Seller
5. Sale of Unit of equity oriented fund to the Mutual Fund. 0.001% Seller
6. Sale of unlisted equity shares by any holder of such shares under an offer for sale to the public included in an Initial Public Offer and where such shares are subsequently listed on a recognised stock exchange. 0.20% Seller
7. Sale of unlisted units of a business trust by any holder of such units which were acquired in consideration of a transfer referred to in clause (xvii) of section 47 of the Income Tax Act, 1961 under an offer for sale to the public included in an initial offer and where such units are subsequently listed on a recognised stock exchange. 0.20% Seller

The provisions of STT shall not apply to taxable securities transactions entered into by-

  1. Any person for, or on behalf of, the New Pension System Trust, or
  2. Any person on a recognised stock exchange located in an International Financial Services Centre where the consideration for such transaction is paid or payable in foreign currency.

Securities Transaction Tax (STT)

Securities Transaction Tax shall be levied on the sale of unlisted equity shares by any holder of such shares under an offer for sale to the public included in an initial public offer and where such shares are subsequently listed on a recognised stock exchange.

-Shivani Khandelwal

LEAVE A REPLY

Please enter your comment!
Please enter your name here