STT charges

Discussion in 'Investors Grievances' started by vinodgupta1976, Jan 12, 2010.

  1. vinodgupta1976

    vinodgupta1976 New Member

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    Hi Friends

    Can anyone tell me what is the STT charges on Expiry Date. I have bought 2500 nifty call and 2500 nifty put of 5200 on expiry or 31st dec 09. In my contract note I have found that a sum of RS 16253 has been deducted as STT charges.

    NSE is playing a fraus game with their clients. Later on I have email to NSE and didn't get proper reply. They email me the new ciruclars that has been introduced in 2008.

    Neither of the broker has informd me about such kind of charges nor NSE. Now who will bare this huge loss.

    Please reply me

    Vinod Gupta
     
  2. bunny

    bunny Well-Known Member

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  3. trader.trends

    trader.trends Well-Known Member

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    Check the following link on the NSE website for word from the Horse' mouth:

    Home > NSCCL > Clearing & Settlement > Derivatives > Securities Transaction Tax

    Securities Transaction Tax

    STT Computation
    As per the Finance Act 2004, and modified by Finance Act 2008 (18 of 2008) STT on the transactions executed on the Exchange shall be as under:

    Sr.No. Taxable securities transaction New rate from
    01.06.2008 Payable by
    #
    a Sale of an option in securities 0.017 per cent Seller
    a Sale of an option in securities 0.017 per cent Seller
    b Sale of an option in securities, where option is exercised 0.125 per cent Purchaser
    c Sale of a futures in securities 0.017 per cent Seller

    1. Value of taxable securities transaction relating to an option in securities shall be the option premium, in case of sale of an option in securities.


    2. Value of taxable securities transaction relating to an option in securities shall be the settlement price, in case of sale of an option in securities, where option is exercised.

    If your option ends in say one or two rupee in the money, you may think you have made profits but the STT here is calculated on the settlement price. Be cautious when allowing in the money options to get settled when they are running with a small premium.
     
    Last edited: Jan 12, 2010

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