Uniform Stamp Duty
Author: Adroit Financial Services Pvt. Ltd Posted on 01 Jul 2020 18:04:07
Stamp duty will be charged uniformly irrespective of the state of residence effective from July 1st, 2020 via this notification. Till date, stamp duty was charged at diverse rates as per your resident state. Brokerage firms used to collect from client and used to pay it monthly to the respective state government. From now onwards, brokerage firms will collect and pay it to the exchanges who will pass it back to the central government.
New rates
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Type of trade
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New stamp duty rate
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Delivery equity trades
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0.015% or Rs 1500 per crore on buy-side
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Intraday equity trades
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0.003% or Rs 300 per crore on buy-side
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Futures (equity and commodity)
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0.002% or Rs 200 per crore on buy-side
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Options (equity and commodity)
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0.003% or Rs 300 per crore on buy-side
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Currency
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0.0001% or Rs 10 per crore on buy-side
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Mutual funds
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0.005% or Rs 500 per crore on buy-side
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Bonds
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0.0001% or Rs 10 per crore on buy-side
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In the 2019-20 Union Budget, stamp duty was made uniform across all states. Check Page 14 on the finance bill. Refer to links of the circulars from various exchanges: Equity, Futures & Options, Currency, Offer for Sale, Offer for Takeover/Delisting/Buy-back, and Commodity. We will update the latest stamp duty from July 1st, 2020.
STAMP DUTY TO BE COLLECTED BY NSDL & CDSL
As per NSDL & CDSL circulor on Government of India notification regarding the Indian Stamp (Collection of Stamp-Duty through Stock Exchanges, Clearing Corporations and Depositories) Rules, 2019 which states the capturing and collection of consideration amount in case of Pledge Invocation and Off Market Sale of Shares - The stamp duty will be collected on the ‘Consideration Amount’ mentioned on Delivery Instruction Slips (DIS) and Pledge invocation slips.
Rate of Stamp Duty as per Indian Stamp Act, 1899 mentioned below:-
Extracts of Schedule I of the Stamp duty on Instruments as per the Indian Stamp Act, 1899.
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Description of Instrument
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Proper Stamp-duty
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(a) in case of issue of debenture;
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0.005%
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(b) in case of transfer and re-issue of debenture.
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0.0001%
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SECURITY OTHER THAN DEBENTURES ( Refer section 9A and 9B of the Amendment to the Indian Stamp Act, 1899)
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Description of Instrument
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Proper Stamp-duty
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(a) issue of security other than debenture;
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0.005%
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(b) transfer of security other than debenture on delivery basis;
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0.015%
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(c) transfer of security other than debenture on
non-delivery basis;
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0.003%
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(d) Government securities
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0%
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(e) repo on corporate bonds
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0.00001%
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Note- Kindly note that Depositories will collect stamp-duty “before execution of off-market transfers” on the consideration amount specified by the transferor. Stamp duty will be payable by the transferor on off-market market transfers within the same depository and inter-depository transfers. Refer to links of the Depository Circulars: NSDL & CDSL.
For the collection mechanism, the transferor shall have advance credit in his ledger with Adroit or shall pay upfront in order to execute the Delivery Instruction Slip.
In case you have any query in this regard, please call us at the contact details mentioned below for your reference. We are happy to help you or you can also write to us at customercare@adroitfinancial.com
Thanks and Regards,
Team Adroit