A PT means any direct or indirect transaction described in IRC 4975(c)(1) between the plan and a DP. The addition of value in each of the individual’s hands is subject to tax. The Income Tax Department appeals to taxpayers NOT to respond to such e-mails and NOT to share information relating to their credit card, bank and other financial accounts. This tax is levied on sale of commodity derivates. The most prominent point about securities transaction tax is that STT charge is applicable only on share transactions made through a recognized stock exchange in the country. This tax is levied on stock market and securities trading. Securities Transaction Tax (STT) STT is a tax collected on all stock exchange transactions. B. This tax is levied on sale of securities (Shares/debentures) What are the Types of Indirect Taxes in India. Description: STT was introduced in the Budget of 2004 and implemented in Oct 2004. DIRECT TAX; INDIRECT TAX; DIRECT TAX. Direct tax can help in reducing inflation, whereas indirect tax may enhance inflation. Securities Transaction Tax: STT is a kind of turnover tax where the investor has to pay a small tax on the total consideration paid or received in a share transaction. The objective behind the levy is to mitigate tax evasion as the same is taxed at source. VAT is a multi-point tax on each of the supply chain companies, in plain words. The rates of STT are prescribed by the Central / Union Government through its Budget from time to time. The Income Tax Department NEVER asks for your PIN numbers, passwords or similar access information for credit cards, banks or other financial accounts through e-mail.. In 2013-14 security transaction tax (STT) was expected to yield Rs. In the budget for 2013-14 Securities Transaction Tax on equity futures has been cut from 0.017 per cent to 0.01 per cent. In tax parlance, this is categorised as a direct tax.. A direct tax is a tax that you directly pay to the authority imposing the tax. 6,720 crore. Security Transaction Tax It is governed by Finance Act. ... SECURITIES TRANSACTION TAX. All these taxes are called indirect taxes because unlike a direct tax, the person paying the tax can pass it on to another party. On 20th September 2019, as anticipated, the all-powerful Goods & Services Tax Council (hereinafter ‘Council’), in its 37th Meeting held in Goa, took certain key decisions. Commodities Transaction Tax It is governed by finance act. Indirect Taxes in India: Receipts from indirect taxes are a very important source of tax revenue for the Central Government in India. Lastly, there’s a securities transaction tax charged on all transactions carried out in a stock exchange. The additional marketing platform does not have a transaction tax. Off-market share transactions are not covered under STT. 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