The association has demanded industry status to SEBI-registered market intermediaries.
Commodities transaction tax in cash market and derivatives segment is applicable only in India.
ANMI has given six suggestions regarding the budget.
New Delhi. Association of National Exchanges Members of India (ANMI) wants the government to completely abolish Securities Transaction Tax (STT) and Commodities Transaction Tax (CTT) in the upcoming budget. These are the two major suggestions of the association in its six suggestions given to the Central Board of Direct Taxes for the upcoming budget. Also, the association has demanded industry status for SEBI-registered market intermediaries.
The association says that India is the only country that imposes Commodities Transaction Tax (CTT) in the cash market and derivatives segment. At the same time, after India, only South Korea imposes STT on cash market equity. STT and CTT in the derivatives and commodity segments are also levied only in India. ANMI has also demanded resumption of STT and exemptions paid. This exemption was available under section 88E. Association says that with the re-implementation of this exemption, the volume will increase and this will increase the collection of STT / CTT.
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What is CTT?
In the 2013 budget, commodities transaction tax was imposed on commodity futures trading. It was announced to impose 0.01 percent commodities transaction tax on futures trading of non-agri commodities ie bullion, energy, metal. Every year the industry demands its removal. The industry argues that if the government wants to save the commodity derivatives market, then CTT should be removed in this budget. Not only has there been a huge drop in volumes due to the imposition of transaction tax, but big corporates have started turning to world markets.
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Security Transaction Tax (SST)
Securities Transaction Tax (STT) was introduced in 2004. Because of STT, now all the transactions of shares and securities have come under the purview of the government. This has made it easier to stop tax evasion. It is a kind of indirect tax. It is levied on the broker instead of being levied directly on the investor/trader. Brokers collect it from their clients and deposit it with the government. The investor or trader has to pay this tax, whether they have made profit or not. STT is currently levied on equity and derivative transactions.
ANMI President Kamlesh Shah said that for growth in GDP, the government should encourage equity investment. That is why the association has given its suggestions to the government. The government should give space in the Union Budget to reforms that contribute significantly to the growth and development of the market.
Tags: Budget, business news in hindi, income tax, indirect tax
FIRST PUBLISHED : November 29, 2022, 13:01 IST