The Hindu Business Line : CSE fiat on transaction tax

THE Calcutta Stock Exchange has urged brokers to make sure that they have set up the necessary back office systems for the levy, collection and remittance of securities transaction tax (STT). These should be put in place with immediate effect.

A note issued by CSE to its members has mentioned that STT on transactions executed on the exchange will be as under: 0.075 per cent for purchase of an equity share of a company or a unit of an equity-oriented fund, where (a) the transaction of such purchase is entered into in a recognised stock exchange; and (b) the contract for the purchase of such share or unit is settled by the actual delivery or transfer of such share or unit.

The rate will be 0.015 per cent for sale of an equity share in a company or a unit of an equity-oriented fund, where (a) the transaction of such sale is entered into in a recognised stock exchange; and (b) the contract for the sale of such share or unit is settled otherwise than by the actual delivery or transfer of such share of unit.

CSE has also outlined the procedure (formulated as per the draft STT Rules) that will be adopted by the exchange in respect of the calculation and collection of STT. The latter will be applicable for all transactions and will be determined after the end of each trading day. As per draft STT Rules, all transactions will be identified based on the client code entered at the time of order entry.

The value of taxable securities transaction shall be determined with respect to the trade executed under a particular trading client code. The exchange has advised members to exercise caution at the time of order entry.

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