Other Levies & Taxes

SEBI Turnover fees


Sr. No. Nature of securities Rate of Fee
1. All sale and purchase transactions in securities other than debt securities 0.0002 per cent of the price at which the securities are purchased or sold (Rs.20 per crore)
2 All sale and purchase transactions in debt securities 0.000005 per cent of the price at which the securities are purchased or sold (Rs.5 per crore)

Stamp Duty


Stamp duty is levied on value of shares transferred. In India stamp duty is levied by various states and hence rate of stamp duty varies from state to state. In Maharashtra, the stamp duty rate for Cash Market (other than Government Securities) and Derivatives Market Turnover (non-delivery) is :

Type of Trade Stamp Duty Rate
Non-delivery trade 0.002%
Delivery trade 0.01%

Service Tax


Category Tax Rate Payable By
Stock brokers Services 15.00% (14.00% service tax, 0.50% swachh Bharat cess, 0.50% krishi kalyan cess) Brokers and collected from their clients.  However if the services are partly performed outside India and payment is received in convertible foreign exchange within 6 months, then the services will be treated as Export of Services and will be exempt from levy of Service Tax

Securities Transaction Tax (STT)


Sr. No. Taxable securities transaction Tax rate from June 1, 2013 upto May 31, 2016 Tax Rate w.e.f. June 1, 2016 Payable by
1. Purchase of an equity share in a company, where such contract is settled by the actual delivery or transfer of such share or unit. 0.100 per cent 0.100 per cent Purchaser- on the value of taxable securities transaction based on the volume weighted average price.
Purchase of a unit of an equity oriented fund, where such contract is settled by the actual delivery or transfer of such share or unit. NIL NIL NA
2. Sale of a equity share in a company, where such contract is settled by the actual delivery or transfer of such share or unit 0.100 per cent 0.100 per cent Seller - on the value of taxable securities transaction based on the volume weighted average price.
Sale of a unit of an equity oriented fund, where such contract is settled by the actual delivery or transfer of such share or unit 0.001 per cent 0.001 per cent Seller - on the value of taxable securities transaction based on the volume weighted average price.
3 Sale of an equity share in a company or a unit of an equity oriented fund, where such contract is settled otherwise than by the actual delivery or transfer of such share or unit. 0.025 per cent 0.025 per cent Seller - on the value of taxable securities transaction based on the volume weighted average price.
4a Sale of an option in securities 0.017 per cent 0.05 per cent Seller - on the option premium..
4b Sale of an option in securities, where option is exercised 0.125 per cent 0.125 per cent Purchaser - on the settlement price.
4c Sale of a futures in securities 0.010 per cent 0.010 per cent Seller - on the price at which such futures is traded.

Futher as per SEBI guidelines FII's are required to settle the transactions by delivery only and therefore sr. no.3 of the above table is not applicable in case of FIIs

Dividend Distribution Tax


Payable by Tax Rate Income in the hands of the recipient
Domestic Company 16.225% (15% + surcharge @ 5% + education cess @ 3%) Exempt
Equity Oriented Fund NIL Exempt
Money market Fund or Liquid Fund - if recipient is individual or HUF - 27.0375% (25% + surcharge @ 5% + education cess @ 3%)
- if recipient in others - 32.445% (30% + surcharge @ 5% + education cess @ 3%)
Exempt
Other Funds - if recipient is individual or HUF - 13.5188% (12.50% + surcharge @ 5% + edcuation cess @ 3%)
- if recipient in others - 32.445% (30%+ surcharge @ 5% + edcuation cess @ 3%)
Exempt

The above information provided is for a general guidance only. However, in view of the specific nature of the transactions and its tax implications, FII’s are advised to consult their own tax advisors with respect to the specific tax implications arising out of India.

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Did You Know

The higher the Percent of Deliverable Quantity to Traded Quantity the better - it indicates that most buyers are expecting the price of the share to go up.

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