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The Central Board of Direct Taxes (CBDT) has notified that commodities transaction tax (CTT) will be levied from July 1.
It will be levied on all commodity derivative contracts other than those relating to 23 specified agricultural commodities.
The 23 agricultural commodities on which CTT will not apply as regards their futures contracts are almond, barley, cardamom, castor seed, channa, copra, coriander, cottonseed and cotton.
The other agricultural commodities that will not come under CTT net are guar seed, isabgol seed, jeera, kapas, maize feed, pepper, potato, mustard seed, raw jute, red chilli, soyabean, soyameal, turmeric and wheat.
Processed agricultural items including sugar, soya oil and guar gum will attract CTT on their futures contracts.
The Finance Minister, P. Chidambaram, had in budget 2013-14 said that CTT will be applcable on non-agricultural commodities at the rate of 0.01 per cent.
There are 22 commodity bourses in the country with six operating at national level. All of them deal only in commodities futures contracts. More than 80 per cent of turnover comes from non-agricultural commodities.
The CTT to be levied from July 1 will have to be borne by the seller of the derivative contract.
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