New Tax payable to Companies on trading their shares

Bobby (service) (54 Points)

09 February 2011

Subject: Suggestion for Budget: consideration of provision of 0.001% Company Share Transaction Tax (CSTT) payable by buyer/seller on each transaction of shares, which will go into the pockets of respective individual Company/PSU, whose shares have been transacted in the Stock Market.

Sir,

I would like to share my suggestions and ask your views on the following:

With due respect, I would like to draw your kind attention for consideration of provision of 0.001% Company Share Transaction Tax (CSTT) payable by buyer/seller on each transaction of shares, which will go into the pockets of respective individual Company/PSU, whose shares have been transacted in the Stock Market..

In the Stock Market, every body is getting its return/shares, except the respective individual Company/PSU, whose shares have been transacted, such as :-

1.	Government	STT, ST + Tax on Capital Gain, etc.
2.	Brokers, Sub-Brokers, Agents, dealers etc.	Brokerage, Accounts Maintenance Charges
3.	Buyers and Sellers	Profit +/- Loss
4.	Employees of Stock Market, Brokers etc.	Salary, Commission etc.
5.	Respective Individual Company/PSU itself Whose shares have been transacted in the Stock Market	“Zero” and “0”

0.001% Company Share Transaction Tax (CSTT) amount, so collected/received by the respective individual Company/PSU, may be used for:

1.	Development of infrastructure and Growth of its Company/PSU (including payment of Dividends to shareholders etc.)
2.	Which may result in the development of Indian Economy, as a whole
3.	this may accentuate the expansion of Indian Stock Market
4.	And once again, it may boost the Growth of the Companies
5.	And it may lead to perpetual repetition of this growth cycle

Government, Ministry of Finance and SEBI, if think appropriate, may take up this matter with all concerned and consider the following or any other suitable CSTT rates, in the interest of the growth of the Companies, development of Indian Economy and expansion of Stock Market, as a whole.

CSTT Rates (on delivery)	CSTT Rates (Intra-Day)
0.001 %	0.0001%

It is also suggested to consider a single flat slab of 10% Tax on all Capital Gains chargeable as TDS, which may be deducted by the Brokers on quarterly/yearly basis, so that :-

1.	burden of Tax Department for cross checking of Capital Gains shown in the returns submitted by the individuals with the actual Capital Gains of individuals in the Stock Market, be reduced; and
2.	Government may get the direct revenue/Tax on the Capital Gains, uninterruptedly.