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: Central Excise rule to resale the machines to a new company :: due date for vat payment :: empanelment :: TAX RATES - GOODS TAXABLE @ 4% :: form 3cd :: ACCOUNTING STANDARD :: list of goods taxed at 4% :: ACCOUNTING STANDARDS :: cpt :: TDS :: VAT Audit :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT :: articles on VAT and GST in India :: VAT RATES
 
 
General »
 Shah gets notices over civic tax dues
 Tax revenue down in first six months after prohibition
 Post demonetisation, Income Tax department sends 30 cases of irregularities to Enforcement Directorate, CBI
 Don’t rush into a new tax without being prepared
 Can’t tax income from palace rent: Supreme Court
  Withdrawal of Legal Tender Character of the existing Bank Notes in the denominations of ₹ 500/- and ₹ 1000/- (Updated as on November 30, 2016)
 Cases for tax scrutiny will be selected by machines
 Time to revisit 1997 direct tax rates, says P Chidambaram
 Lok Sabha passes Bill to tax black money deposits post demonetisation
 Last day to pay property tax with old notes
 Income tax department asks IDS declarants to pay tax by 30 November

Commodity transaction tax likely to be introduced in Budget Session Read more at: http://indiatoday.intoday.in/story/finance-minister-p-chidambarum-commodity-transaction-tax-budget/1/250921.html
February, 20th 2013

Despite strong lobbying by commodity traders, the Finance Ministry is likely to go ahead with its plan to levy a commodity transaction tax (CTT) of 0.018-0.125 per cent on all non-agro commodity trades such as gold, silver, non-ferrous metals and crude oil in the forthcoming Budget .

CCT will be similar to the securities transaction tax (STT), levied on the purchase and sale of equities in the stock market. So far, commodity transactions have been exempted from any levy.

"In the last few days, there have been discussions with banks, stock and commodity exchanges, Consumer Affairs Ministry and other stake holders. However, the government is planning to go ahead with CTT," a senior Finance Ministry official told Mail Today.

"CTT is expected to be to the tune of 0.018-0.125 per cent. While agricultural commodities will be exempted from CTT, non-farm commodities such as gold, silver and non-ferrous metals such as copper and energy products like crude oil and natural gas will be taxed," the official further said.

Currently, STT of 0.1-0.025 per cent is levied on stock market transactions. The tax has led many investors to shift to commodity exchanges as there is no transaction charges levied on commodity trading.

The Finance Ministry's logic is that levying CTT will not only add to revenue but also create a level playing field between the stock investor and the commodity exchange investor.

"As per the ministry estimate, it will add about Rs.4,500 crore to the exchequer but more than revenue it is aimed at bringing transparency in the commodity exchange market," the official added.

Paying the tax will leave a paper trail of such transactions, which would help keep track of black money.

Finance Minister P. Chidambaram had already met representatives of various commodity exchanges in Mumbai last week and sounded them on the move. Even banks and stock exchanges in their meeting with Chidambaram have said that either the government should impose CTT or do away with STT so that there is a level playing field.

However, commodity exchanges have warned that this will be counterproductive. Levying CTT will lower trade volumes and not contribute much to the government exchequer, they have said. "Rather contrary to the government's expectation, levying CTT will boomerang, which may lead to loss in revenue," National Multi-Commodity Exchange vice-president (business development, north) M.K. Khattar said on Tuesday. "The claims made by stock exchanges are not correct. Volumes in equity trading are not getting shifted to commodity market. As per the data, shifting of volumes is happening from cash and futures segment of equity market to equity options," Khattar added.

Initially, CTT was proposed by Chidambaram in the 2008-09 Budget. According to plan, the proposal was to levy 0.017 per cent tax on commodity derivatives trade on the lines of STT. But the proposal was not implemented due to the slowdown and strong opposition from the food processing and consumer affairs ministry and commodity exchanges.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Experience

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