Charges other than Brokerage for Stock Exchange Transactions

rajputz

Well-Known Member
#1
Charges other than Brokerage for Stock Exchange Transactions


Are you a day trader or active trader? One of the most pertinent question you should ask yourself is - What is your trading cost? Simple question, but not so simple answer. Did you just say - “30 paisa for Delivery and 3 paisa for F&O”. Wait, have you considered all the charges you are paying for executing trades on stock exchange. Quite often you recall and consider only your brokerage cost. But there are so many other charges which are levied on Stock exchange transactions apart from brokerage.

Take Check out the contract note and examine. You will see the following charges in addition to Brokerage charges – Securities Transaction Tax (STT), Stamp Duty and Other Charges. In most of the cases the break up of “Other Charges” is not provided, but note it consists of Transaction Charges and SEBI Turnover Charges. Then there is also Service Tax which is levied on all the charges except STT.

More often than not, when you are taking close intra-day trading calls, where the margins are wafer thin, you should have complete grasp of what your costs are going to be for a particular trade. These additional cost can become the difference between a winning trade and losing trade. Please see below detailed information on statutory charges on stock exchange transactions, other than Brokerage charges.

Securities Transaction Tax (STT)


Equity Delivery Transactions
Purchase: 0.125% of Turnover i.e. (Number of Shares * Price)
Sell: 0.125% of Turnover i.e. (Number of Shares * Price)

Equity Intra-day Transactions
Purchase: NIL
Sell: 0.025% of Turnover i.e. (Number of Shares * Price)

Future Transactions
Purchase: NIL
Sell: 0.017% of Turnover i.e. (Number of Lots * Lot Size * Price)

Option Transactions
Purchase: NIL at the time of purchase of option. However the purchaser has to pay 0.125% of the Settlement Price i.e. (Number of Lots * Lot Size * Strike Price), in case of option exercise
Sell: 0.017% of Premium

Transaction Charges

Equity Delivery Transactions
Purchase: 0.0035% of turnover in NSE and 0.0034% of Turnover in BSE
Sell: 0.0035% of turnover in NSE and 0.0034% of Turnover in BSE

Equity Intra-day Transactions
Purchase: 0.0035% of Turnover in NSE and 0.0034% of Turnover in BSE
Sell: 0.0035% of Turnover in NSE and 0.0034% of Turnover in BSE

Future Transactions
Purchase: 0.002% of Turnover i.e. (Number of Lots * Lot Size * Price)
Sell: 0.002% of Turnover i.e. (Number of Lots * Lot Size * Price)

Option Transactions
Purchase: 0.05% of Premium
Sell: 0.05% of Premium

SEBI Turnover Charges

Equity Delivery Transactions
Purchase: NIL
Sell: NIL

Equity Intra-day Transactions
Purchase: NIL
Sell: NIL

Future Transactions
Purchase: 0.0002% of Turnover i.e. (Number of Lots * Lot Size * Price)
Sell: 0.0002% of Turnover i.e. (Number of Lots * Lot Size * Price)

Option Transactions
Purchase: 0.0002% of Premium
Sell: 0.0002% of Notional Value in case of exercise or assignment

Stamp Duty

Equity Delivery Transactions
Purchase: 0.01% of Turnover. Turnover usually taken in multiple of Rs 5000
Sell: 0.01% of Turnover. Turnover usually taken in multiple of Rs 5000

Equity Intra-day Transactions
Purchase: 0.002% of Turnover. Turnover usually taken in multiple of Rs 5000
Sell: 0.002% of Turnover. Turnover usually taken in multiple of Rs 5000

Future Transactions
Purchase: 0.002% of Turnover. Turnover usually taken in multiple of Rs 5000
Sell: 0.002% of Turnover. Turnover usually taken in multiple of Rs 5000

Option Transactions
Purchase: 0.002% of Premium
Sell: 0.002% of Notional Value in case of exercise or assignment

Service Tax

Service Tax, Surcharge and Education Cess are applicable on Brokerage, Transaction Charges, SEBI Turnover Charges and Stamp Duty. Note Service Tax, Surcharge and Education Cess are not applicable on Securities Transaction Tax (STT).




 
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superman

Well-Known Member
#3
Thanks for the detailed charges :)
BTW is there a thing called minimum brokerage charges ?
My geojit charged me 20 rs even though they have stated they charge 0.3%.
i purchased 10 shares worth 109.7rs but my total deduction is 1120.21 instead of 1097+(charges you said above which will amount to say 5-7rs max)
Does it apply to all trading platforms or only geojit does that ?
 

rajputz

Well-Known Member
#4
Thanks for the detailed charges :)
BTW is there a thing called minimum brokerage charges ?
My geojit charged me 20 rs even though they have stated they charge 0.3%.
i purchased 10 shares worth 109.7rs but my total deduction is 1120.21 instead of 1097+(charges you said above which will amount to say 5-7rs max)
Does it apply to all trading platforms or only geojit does that ?
Considering both the legs that is buy side and sell side you should be charged 1104 Rs. i dont know abt geojit how they charge....you should call the customer care executive and ask for the clarification.....if you took the deilvery of the above said then you would have been charged 1104Rs(including brokerage of both buy and sell side and other hidden charges i told above). you should clarify it with them. i am not Familliar with Minimum Brokerage cause i never traded with small Capital (may be thats the reason i dont know)....will try to find out ur querry
 
#5
Thanks for the detailed charges :)
BTW is there a thing called minimum brokerage charges ?
My geojit charged me 20 rs even though they have stated they charge 0.3%.
i purchased 10 shares worth 109.7rs but my total deduction is 1120.21 instead of 1097+(charges you said above which will amount to say 5-7rs max)
Does it apply to all trading platforms or only geojit does that ?
Yes there is minimum brokerage, Sharkhan charges 16 Rs as the minimum brokerage Sell side only.

e.g If you sell x number of stocks and your brokerage is 10 Rs then Rs 6 will added to it.

Maybe in your case geogit charges min brokerage at buy side too.


@ Rajputz - Great post.
 

rajputz

Well-Known Member
#6
Actually i started my account with 1 lac....thats y didnt know if there was any minimum brokerage kind of thing....
 

vasa1

Active Member
#7
Thanks for the detailed charges :)
BTW is there a thing called minimum brokerage charges ?
My geojit charged me 20 rs even though they have stated they charge 0.3%.
i purchased 10 shares worth 109.7rs but my total deduction is 1120.21 instead of 1097+(charges you said above which will amount to say 5-7rs max)
Does it apply to all trading platforms or only geojit does that ?
The terms and conditions are clearly mentioned on the website.


Code:
Brokerage rates applicable w.e.f. December 1, 2006 for Online Retail Trading ** provided linked demat account is with Geojit BNP Paribas Financial Services Ltd.
Delivery-based Volumes *
Volume *(Rs.) 	New Brokerage Rate
< 10 lacs 	0.30% (current)
> 10 lac < 50 lac 	0.25%
> 50 lac < 1 cr 	0.20%
> 1 cr < 2 cr 	0.15%
> 2 cr 	0.10%
Intra-day Volumes *
Volume *(Rs.) 	New Brokerage Rate
< 2 cr 	0.030% (current)
> 2 cr < 6 cr 	0.025%
> 6 cr < 12 cr 	0.020%
> 12 cr < 15 cr 	0.015%
> 15 cr 	0.010%
F&O Volumes *
Volume *(Rs.) 	New Brokerage(per lot)(Rs.)
< 9 cr 	75(current)
> 9 cr < 18 cr 	65
> 18cr < 27 cr 	50
> 27cr < 36 cr 	40
> 36 cr 	30
* Applicable for a calendar month and should be achieved through online channels.
** Applicable to Ordinary Resident account only
[B]# Subject to minimum brokerage as under[/B]:

   1. [B]Rs.20 per Contract or 1 paisa per share whichever is higher subject to a maximum of 2.5% per share[/B].
   2. In case the contract note is delivered by post then Rs.20/- per Contract or 5 paisa per share whichever is higher subject to a maximum of 2.5% per share.
 

xtalk

Active Member
#8
SEBI Turnover Charges

Equity Delivery Transactions
Purchase: NIL
Sell: NIL
In last few contract notes I see Rs.0.02-0.03 being charged as "SEBI Turnover Tax" for all delivery based transactions (Buy/Sell). Let me know if SEBI Turnover Tax is now applicable in delivery based transactions as well.
 

murthymsr

Well-Known Member
#9
Thanks, Rajputz for the very useful info.

I have one query.

turnover = qty * price ?
(or)
turnover = qty * (price + brokerage) ?

thanks in advance.

murthymsr
 

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