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1. What is Securities Transaction Tax (STT)?
Ans. Securities Transaction Tax or turnover tax, as is generally known, is a tax that is leviable on taxable securities transaction.
2. Which are the taxable securities transactions?
Ans. Taxable Securities Transactions are transactions involving
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Purchase or sale of (provided it is entered into at recognized stock exchanges):
- equity share in a Company or
- a derivative or
- a unit of an equity oriented fund
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Sale of a unit of an equity oriented fund to the Mutual Fund itself.
3. How are taxable securities transactions valued for the purpose of levy of STT?
Ans. The value of transactions on which STT is levied is listed as under:
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Particulars of Transaction
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Value (Rs.)
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| Derivatives- Options in Securities |
Strike + Option Price Premium |
| Derivatives- Futures Futures |
Trading Price |
| Others |
Purchase or Sale Price, as applicable |
4. What are the rates applicable for levy of STT?
Ans. The rates of STT are as follows:
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Sr.No.
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Taxable Securities Transaction
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Rate
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Payable by
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| 1. |
Purchase of an equity share in a company or a unit of an equity oriented fund, where
(a) the transaction of such purchase is entered into in a recognized 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.
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0.075%
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Purchaser
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| 2. |
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 recognized stock exchange; and
(b) the contract for the sale of such share or unit is settled by the actual delivery or transfer of such share or unit.
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0.075%
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Seller
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| 3. |
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 recognized stock exchange; and
(b) the contract for sale of such share or unit is settled otherwise than by the actual delivery or transfer of such share or unit.
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0.015%
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Seller
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| 4. |
Sale of a derivative, where the transaction of such sale is entered into in a recognized stock exchange.
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0.01%
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Seller
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| 5. |
Sale of a unit of an equity oriented fund to the Mutual Fund.
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0.15%
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Seller
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