Latest Expert Exchange Queries

GST Demo Service software link:
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft
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
Popular Search: form 3cd :: Central Excise rule to resale the machines to a new company :: list of goods taxed at 4% :: TDS :: due date for vat payment :: VAT Audit :: VAT RATES :: ARTICLES ON INPUT TAX CREDIT IN VAT :: empanelment :: cpt :: ACCOUNTING STANDARD :: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India :: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes
« News Headlines »
 7 Tax-saving investments for the risk averse
 5 Tax tasks you should complete before March 31
 March 31 deadline nears: Check out these last-minute tax-saving investment options
 How to file income tax returns online without having Form 16 in 10 simple steps
 Deadline For Filing Income Tax Return (ITR) Is Just 11 Days Away: 10 Latest Details To Know
  10 incomes you need not pay any tax on
 How To File Income Tax Returns In Three Steps By March 31, 2018
 10 things about income tax every taxpayer should know
 What to do if your TDS is not deposited with the government
 What if you forget to verify your Income Tax return?
 TDS on rent and other tax tasks to complete before March 31

Turnover tax likely to push up commodity trading costs
March, 04th 2008

The imposition of commodity turnover tax and service tax on exchange levy in commodity futures trading is likely push up trading cost to 47 per cent from 22 per cent of their margins. Investors feel the additional burden would more or less wipe out their margin in trade.

The Finance Minister has introduced commodity transaction tax and 12 per cent service tax on exchange levy besides education cess on the tax.

This has come when there was an all round expectation for lifting the ban on futures trading in wheat, rice, urad and tur.

Insiders say, earlier if one lot (1 kg) of gold cost Rs 12 lakh, expenses incurred for selling on the exchange were brokerage (0.03 per cent) of Rs 360, service tax on brokerage Rs 43.20, 3 per cent education cess of at Rs 1.296, stamp duty (Rs 1 per lakh) at Rs 12, exchange levy of 0.004 per cent (based on turnover, more the turnover lesser the levy) at Rs 48, totalling Rs 465.

From April, an additional cost include service tax on exchange levy at Rs 5.76, education cess of 3 per cent on service tax at Rs 0.1728, commodity transaction tax (CTT) of 0.017 per cent on turnover at Rs 204, adding up to Rs 674.43 or Rs 210 more. Similarly, the buyer has to pay a CTT of 0.125 per cent.

The increase in incidental cost will wipe out whatever we can save by hedging on the commodity futures exchanges. Trading in agriculture commodity sector to be hit more as the sentiments are already weak due to the ban on a few commodities, said Mr Venkatesh Rao, a Mumbai-based investor.

Mr B.C. Khatua, Chairman, Forward Markets Commission, said the introduction of CTT will adversely affect the commodity futures market. Commodity markets are just four years old, the Government should have given us some more time before introducing this tax, he said.

Mr Sushil Sinha, Assistant General Manager, Karvy Commodities, said incidental cost on hedgers will be more pronounced as their exposures are bigger. Investor margins may also shrink.

Suresh P. Iyengar

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 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