Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: cpt :: articles on VAT and GST in India :: ACCOUNTING STANDARDS :: TAX RATES - GOODS TAXABLE @ 4% :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: form 3cd :: list of goods taxed at 4% :: TDS :: due date for vat payment :: VAT RATES :: empanelment :: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT
 
 
Direct Tax »
 Income Tax department rejects black money disclosures of over Rs 2 lakh crore
 CBDT urges people to protect bank accounts from 'unscrupulous elements'
 No change in gold seizure norms in proposed I-T Law amendments
 Direct tax collection will get a long-term boost, Franklin Templeton says
 I-T Act amendments upset calculations of cash hoarders
 Claim tax benefit on costs incurred to evict tenants
 The Integrated Goods And Services Tax Act, 2016
 Here’s what Income Tax Department did leading up to demonetisation
 I-T department asks IDS declarants to pay tax by November 30
 Cash trove tax drive dilemma
  CBDT halves Income Tax refunds issue timeline to 15 days for this fiscal

Wait gets longer for lower Securities Transaction Tax
October, 13th 2011

The stock market will have to wait a little longer to see any reduction in the Securities Transaction Tax (STT).

The Capital Market Division of the Finance Ministry has called a meeting on October 17 to take a view on the proposed cut in STT.

It will take some time to arrive at a decision, a senior Finance Ministry told Business Line.

The Ministry last month said that it is seriously considering cutting or removing STT after receiving suggestions from various stock exchanges.

This step, along with a proposal to a uniform stamp duty, was being considered to boost the sagging stock market. Though the markets have recovered on positive cues from the international market, apprehensions are still there.

Sources said that there are reservations on the reduction. The Central Board of Direct Taxes (CBDT) is not in any mood to see a further reduction in revenues.

During the first six month of this fiscal, the STT collection has reached Rs 2,500 crore. The Finance Ministry has set a target of Rs 7,500 crore for the entire financial year.

There is also a debate on the mechanism to review the STT. This can be done either outside the budget or in the budget, the official said.

For taking action outside the budget, the Finance Ministry will have to issue an ordinance and bring an amendment in the winter session of Parliament. But to take this step, urgency has to be established. The other option is to wait till February 2012.

The Capital Markets Division has said that STT has never been considered as a revenue source. The tax increases transaction costs, it said. The division is of the opinion that anything that is good for the market should be done, and reviewing STT is one of the measures.

Stockbrokers say that on an average brokerage of 10 paise per Rs 100 for an institutional investor, STT constitutes of over 50 per cent in the transaction cost. STT is levied on the sale or purchase of shares, equity oriented mutual funds and futures and options in securities.

Market players are disappointed on the changing stand of the Government. STT has an affect on volumes. Any delay in reducing or removing the STT will impact volume in the short run and direction in the long run, said Mr Ashok Agarwal, Director, Globe Capital.

Mr Vijay Bhushan, Director, Bharat Bhushan Equity Traders, said that last month's announcement had given hope and now the delay will cause negativity in the market.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Publishing Management System PMS News Management System Publishing Management System Development Online News Management System for media company custom Publishing management system development Survey management system Market Res

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions