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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
News Headlines »
 Income tax on your gold and real estate investments
 Extension of time limit for submitting the declaration in FORM GST TRAN-1 under rule 117(1A) of the Central Goods and Service Tax Rules, 2017 in certain cases
 How RBI dealt with the crisis amid tensions with FinMin
 Pay tax on this PF account withdrawal Income tax return (ITR) filinga
 Seeks to make amendments (Ninth Amendment, 2018) to the CGST Rules, 2017.
 How govt is dealing with tax evasion, corporate fraud
 How to check income tax return (ITR) status
 Second instalment of advance tax due on 15 September
 Missed the deadline for filing India ITR? Here is what you can do
 Last date for filing GST annual return is December 31
 How insurance policies help you save tax

Taxmen love this mkt: STT mop-up hits Rs 3,400 cr
January, 08th 2007

Finance minister P Chidambaram has a reason to smile. The government's revenues from securities transaction tax (STT), which was introduced in the 2004-05 Union Budget, has recorded a significant rise on the back of the historic bull run in the current year.

If finance ministry sources are to be believed, the government has collected about Rs 3,400 crore by way of STT during April-December and may see another Rs 1,000-1,200 crore coming in to the kitty in the last three months of the fiscal, provided the stock market continues its winning streak. This compares with Rs 1,500-2,000 crore that the government is estimated to have mopped in 2005-06.

In 2004-05, STT revenues were to the tune of approximately Rs 1,000 crore, much below the government's expectations of Rs 2,000 crore. That had prompted the FM to hike the rates in the subsequent year. The hike in STT rates and rising turnover on the bourses could have boosted the government's STT income this year, say brokers.

The combined turnover (value of shares traded) at the country's two premier stock exchanges, BSE and NSE, shot up to Rs 21.2 lakh crore in April-December, compared to Rs 23.9 lakh crore in the entire 2005-06 and Rs 16.6 lakh crore in 2004-05. Average daily turnover jumped to Rs 11,237 crore from Rs 9,504 crore and Rs 6,556 crore.

Brokers fear that higher STT revenues may encourage the FM to raise the rates further after a 25% hike last year. There is a feeling among day traders like jobbers and arbitrageurs that the current rates are on a higher side, putting pressure on margins and trading volumes.

We hope there would not be a further rise in STT rates. We have already made representation to the finance ministry that overall transaction cost in India is very high compared to developed markets, said VK Singhania, chairman, Association of NSE Members of India (ANMI).

The market expects the government to surpass its STT collection target for 2006-07. Currently, delivery-base transactions attract STT of 0.125% on both buy and sell sides, while in case of non-deliver based transactions, the rate has gone up from 0.02% to 0.025% on sale side. In the F&O segment, STT is charged on sale side at 0.017%. The STT revenues will be in the region of Rs 4,000-4,500 crore this year. We want the government to lower the rates particularly on F&O trades.

This would help improved liquidity and push up volumes in the market, said BR Bagri, chairman and CEO of BLB Ltd, one of leading arbitrageurs in the country.

The government had introduced STT in 2004-05 at the uniform rate of 0.15%. The proposal did not go down well with the trading community then.This prompted Mr Chidambaram to modify the rates and offer differential rates for different market players.

The STT was brought down from 0.15% on buyers for delivery transactions to 0.075% for buyers as well as the sellers. It was reduced to 0.015% on non-delivery transactions with effect from October 1, 2004.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Work Flow Workflow Software Software Automation Workflow automation Software Design Workflow Design Business Work Flow Workflow automation tools

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