Miscellaneous Charges.

sangfroid22 · #1 15th April 2008, 04:48 PM

Hi all,

I've recently opened a Demat A/c with Sharekhan and have not started trading yet. Before taking Plunge into Stock market, I wanted to get few things clarified.

First of all, I like to be an IntraDay Trader i.e., buy stocks today and sell it tomorrow.

Q) I'm under the impression that if I buy 100 shares of ABC Company @ Rs.100 per share and sell it on the same day @ Rs.107 per share, I stand to gain Rs.700.

Now my queries are as follows.

1. If my Brokerage fee is 0.5 %, do I've to pay 0.5% on buying side (Rs.100*100 sh = Rs.10,000/-) and on selling side as well(Rs.107*100 sh= Rs.10,700/-)

2. What is the rate of STT?

3. What is the rate of Service Tax?

4. In addition to Brokerage Fee, STT and Service Tax, DO I HAVE TO PAY ANY OTHER CHARGES?

5. As I prefer to be a Short-term trader, do i stand to gain tax benefits ?( as I pay STT).

6. Kindly, illustrate the above question (highlighted in yellow colour) in detail breaking up Brokerage Fee, STT and Service Tax and any other charges if applicable. And let me know what exact amount I gain?

7. Also I come across few Terminologies which I don't understand. They are First Leg, Second Leg, Delivery?

Help appreciated.

Thanks & Regards

Sangfroid

uasish · #2 15th April 2008, 06:36 PM

It seems advertently you have posted 2 mssgs with identical text,this is not advisable.

Northie · #3 18th April 2008, 10:29 AM

Quote:

Originally Posted by sangfroid22

Hi all,

I've recently opened a Demat A/c with Sharekhan and have not started trading yet. Before taking Plunge into Stock market, I wanted to get few things clarified.

First of all, I like to be an IntraDay Trader i.e., buy stocks today and sell it tomorrow.

Q) I'm under the impression that if I buy 100 shares of ABC Company @ Rs.100 per share and sell it on the same day @ Rs.107 per share, I stand to gain Rs.700.

Now my queries are as follows.

1. If my Brokerage fee is 0.5 %, do I've to pay 0.5% on buying side (Rs.100*100 sh = Rs.10,000/-) and on selling side as well(Rs.107*100 sh= Rs.10,700/-)

2. What is the rate of STT?

3. What is the rate of Service Tax?

4. In addition to Brokerage Fee, STT and Service Tax, DO I HAVE TO PAY ANY OTHER CHARGES?

5. As I prefer to be a Short-term trader, do i stand to gain tax benefits ?( as I pay STT).

6. Kindly, illustrate the above question (highlighted in yellow colour) in detail breaking up Brokerage Fee, STT and Service Tax and any other charges if applicable. And let me know what exact amount I gain?

7. Also I come across few Terminologies which I don't understand. They are First Leg, Second Leg, Delivery?

Help appreciated.

Thanks & Regards

Sangfroid

Quote:

Originally Posted by sangfroid22

Hi all,

First of all, I like to be an IntraDay Trader i.e., buy stocks today and sell it tomorrow.

and first of all this is neither intraday nor trading. It is delivery.

query#1 - Yes, you have to pay for both buying and selling but if you subscribe for their AMC 6000 scheme then no brokerage on either buying or selling depending upon your position (long/short)

query#2 - You have to search the info manually.

query#3 - service tax rate is 12% of total brokerage charged.

query#4 - yes, you have also to pay Stamp Charges, Turn Over Charges, Edu Cess, HEdu Cess. Even I am going to search the rate of these tax charges after posting this messege.

query#5 - I think No tax benefit for short term player. Tax exemption like turnover tax exemption is for long term investors only who invest for more than a year.

query#6 - First of all your choice of yellow color was very bad and eye stressing. I'd to select the whole sentence to read it. You will not stand for a pure profit of Rs. 700/- as you have to pay various taxes and brokerage. Even I am going to search the rate of these tax charges after posting this messege.

query#7 - Search these terms on this forum or google them. You'll surely find them.

samazaz · #4 16th June 2008, 09:03 AM

Hi,
I have recently stepped into the share market and was having a completely different idea from what the actuality is.
I bought some company stock at 485 Rs per share, and sold 1 share at Rs 490 to see how it goes.
But when I recieved the amount in my account, it was 471Rs.
The detail is like this :
service tax + education cess + higher education cess + STT + stamp duty + turnover charges + min.Div charges (the max of all) is deducted from the sale.
so, actually I incurred a loss of 15 Rs instead of profit.
Can anybody please tell me what is this min dividend charges that has changed my profit into loss....