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: ACCOUNTING STANDARD :: ACCOUNTING STANDARDS :: TDS :: VAT RATES :: Central Excise rule to resale the machines to a new company :: cpt :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT :: due date for vat payment :: list of goods taxed at 4% :: empanelment :: VAT Audit :: TAX RATES - GOODS TAXABLE @ 4% :: form 3cd :: articles on VAT and GST in India
 
 
« Sales Tax »
 To protect its status, state forms panel to draft legislation on GST
 India Fails to Break Deadlock on New Sales Tax
 Sales tax staff protest against goods service tax council
 Income tax survey on city jeweller
 Service tax levy to weigh on upstream companies’ earnings
 5 pc tax on online sales awaits Cabinet approval
 Amendment to Additional Sales Tax Act unconstitutional: High Court
 Maharashtra will soon achieve Rs one lakh cr sales tax : CM Devendra Fadnavis
 CBEC chief bats for minimal exemptions for India Inc under GST
 Issuance of Free Sale & Commerce Certificate to Merchant Exporters
 Why model GST law does not give confidence to exporting community

Exempt commodity derivatives from transaction tax
December, 28th 2012

Amid speculation that government may impose tax on commodity derivatives in the budget 2013-14, industry bodies have demanded exemption to such derivatives from transaction tax, saying any levy would distort the nascent market.

Commodity bourses and brokerage firms are speculating that government may reopen the old proposal made in the 2008-09 Budget to levy 0.017 per cent tax on commodity derivatives trade (Rs 17 on Rs 1 lakh worth transaction).

In separate representations to Finance Minister P Chidambram, three industry bodies, CPAI, CII and Asshocam, have demanded exemption to commodity derivatives from any transaction tax.

"It is learnt that some of interest groups in the stock markets are attempting to influence public opinion to remove lower some taxes in stock transactions citing that similar taxes are not levied in commodities derivatives. ... unlike the stock market, the raison detre of commodity derivatives is risk management," Assocham Secretary General D S Rawat said in a representation.

Commodity derivatives are hedging instruments and fundamentally different from equities. "Transaction tax can only increase the cost of hedging and drive out genuine hedgers," he said.

Assocham also said the commodity market has already been heavily taxed in the form of mandi tax, VAT, excise and customs duties both at the central and state government level, most of which do not exist for securities market. "In the light of above, we request you to refrain from imposing any transaction tax on commodity derivatives," it demanded.

Expressing similar views, Commodity Participants Association of India (CPAI) said: "All three hedging instrument – currency, commodity and interest rate derivatives – should not have transaction taxes as this would make markets narrow, shallow and illiquid, hurting price discovery as well as risk management,"

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Reengineering Software Re-engineering Software Reverse Engineering Software Reverse Development Software Change Modulation Software Conversion Software Re-creation Software Re-development

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