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: form 3cd :: ARTICLES ON INPUT TAX CREDIT IN VAT :: articles on VAT and GST in India :: due date for vat payment :: VAT Audit :: VAT RATES :: ACCOUNTING STANDARDS :: Central Excise rule to resale the machines to a new company :: TDS :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: cpt :: list of goods taxed at 4%
 
 
Direct Tax »
 Hopeful of meeting direct tax collection target for this financial year: CBDT
 Bengaluru tops in income tax probes after demonetisation
 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

Securities transaction tax collection down 13% as trading volumes plunge
December, 06th 2012

Securities transaction tax (STT) collections dipped 12.9% during the April to November 2012 period, as weak investor sentiments over the past several months resulted in a dip in trading volumes.

The Income-tax department collected Rs 2,905 crore in STT during the period, compared with Rs 3,335 crore collected during the corresponding period last fiscal.

Collection of STT, which is paid by both buyers and sellers of equities, has been on the decline since last year. The fall in STT collection was largely due to low trading volumes, a fallout of the general slackness in the economy and weak market sentiment.

STT collection dropped sharply during 2011-12, falling short of the year's target of Rs 7,500 crore by Rs 1,500 crore, or 20%.

The current fiscal's target for STT collection is below Rs 6,000 crore. A senior income-tax official said, "Unless the market sentiments change significantly in the remaining months of the fiscal, we will fall short of the target for STT collection."

Going by the trend so far, STT collection for the current fiscal has been below the actual collection last fiscal. This is the second successive year that STT collection has fallen short of the previous year's collection.

The decision of the government to reduce tax on delivery-based trades to 0.1% from 0.125% earlier also is considered a reason for the fall in STT collection.

The measure proposed in this year's Budget took effect on July 1. Delivery volumes, which have a higher STT, declined whereas trading in options, which have a low STT, rose sharply, market experts observed.

Deven Choksey, Managing Director of KR Choksey Shares & Securities, told ET, "Options trading in the derivatives market attracted more than 90% volumes while delivery-based volumes remained as low as 2-3% in the current financial year. Lower delivery-based volumes would have adversely impacted STT collection recorded by the bourses." Most of the foreign ETFs largely participated in options trading, thereby contributing significantly to the spurt in volumes in this segment, he added.

STT was introduced in 2004-05 as a tax on securities transactions at the rate of 0.125%. Both buyers and sellers of securities have to pay the tax.

By introducing STT, the government was seeking to offset the revenue shortfall arising from the withdrawal of long-term capital gains tax and the reduction of tax on short-term capital gains to 10% from 30%.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Website Ranking Website Ranking Company Website Positioning Alexa Ranking Website Promotion Website top 10 ranking website top 10 promotion search engine result promotion Strategic Internet Marketing Website Optimization Website Ranking Factors

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