STT & SERVICE TAX on stock transaction

This query is : Resolved

vijay bandbe (Querist)
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01 August 2008 what is the rate of stt on stock transaction?
rate of short term capital gain
rate of service tax on stock broking

please tell me as early as possible

CMA Gul S

CMA Gul S (Expert)
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01 August 2008 Vijay,

Please refer this

STT Rates

The National Stock Exchange and the Bombay Stock Exchange have raised securities transaction tax (STT) on the transactions executed on the exchanges in derivatives and capital market segments from June 1.

The revision is as per the Finance Act 2006, which received Presidential assent on April 18.

In the case of the capital market segment, the tax has been revised upward to 0.125 per cent from 0.1 per cent.

However, the sale of an equity share in a company or a unit of an equity-oriented fund where the transaction of such sale is entered into in a recognised stock exchange and the contract for the sale of such share or unit is settled otherwise than by the actual delivery or transfer of such share or unit has been revised upward from 0.2 per cent to 0.025 per cent.

In the derivatives segment, sale of a derivative where the transaction of such sale is entered into a recognised stock exchange, the rate has been revised from 0.0133 per cent to 0.017 per cent.

Short Term Capital Gain Tax

Short-term capital gains (STCG) One year or less Ordinary income tax rates up to 35%

Service Tax on Stock Broking this shd be 12%

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
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01 August 2008 Short Term Capital Gains Tax

Short Term Gain from sale of securities sold on a stock exchange on which STT has been paid are to be taxed as per section 111A whereby the tax for Asstt Year 2008-09 & 09-10 is payable @ 10% and 15% respectively.

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