SEBI Turnover Fees, STT and Other levies
SEBI Turnover fees
| Sr. No. | Nature of securities | Rate of Fee |
|---|---|---|
| 1. | All sale and purchase transactions in securities other than debt securities | 0.00015 per cent of the price at which the securities are purchased or sold (Rs.15 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 | 18.00% (GST) | 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.
Updated on: 03/02/2021
