Kochi, March 17
MEMBERS of the India Pepper and Spice Trade Association (IPSTA) have opposed the Forward Market Commission's (FMC) proposed move to introduce turnover- based fee. Mr Kishor Shamji, President, IPSTA, told Business Line that the Indian commodity market was now at a growing stage and any kind of tax imposition on the turnover on members of the commodity exchanges at this juncture would affect trading.
Currently, traders are already paying a service tax of 10.2 per cent. Besides, they have to pay transaction fees and other expenses following the introduction of online trading. If the proposed turnover fee is introduced, it would raise trading cost, which they claim is on the higher side. Such a situation would bring down the volume, he said.
Therefore, any additional burden on the booming stage of commodity markets would have a negative impact, he said. However, he added, traders/brokers were not against registration with the FMC.
The FMC, the regulator for commodity markets in the country and engaged currently in developing the markets, is reported to be planning to introduce a turnover-based fee for commodity brokers.