Stamp Duty on NSE Derivatives Contracts

#1
We all pay stamp duty on NSE derivatives contracts but I was under the impression that the rate of stamp duty payable is as per the stamp duty applicable in the state in which broking house is registered.

A friend of mine who stays in Maharashtra has opened a trading account with a broker having registered office ( and only one office) in Maharashtra . But as the friend came on transfer from West Bengal and he does not have address proof of Maharashtra, he gave his permanant West Bengal address.He trades Nifty Futures and Bank Nifty Futures on NSE which is registered in Maharashtra.In Maharashtra , the stamp duty payable on non delivery securities contract is @0.002 % but my friend's broker is charging him @0.01% which is 5 times the duty applicable in Maharashtra on the grounds that his address is in West Bengal and West Bengal stamp duty rates are applicable.

What is the correct position on this point ? Is there any circular from NSE to this effect clarifying the stamp duty rates applicable as per address of the client or the registered office of the broker ?

I checked up ICICI Direct stamp duty. It is 0.002% and not a function of where the client is located as ICICI direct account is a web based trading account. This friend also is trading web based on NSE NOW.

If some circular on this can be obtained then the matter can be taken up with the stock broker/ NSE

Smart_trade
 

SavantGarde

Well-Known Member
#2
Hi ST,

Whether Stamp Duty is applicable on Derivatives Contract has been a hot debate for several years......Legal opinion being that it is indeed incorrect to apply Stamp Duty on Derivatives Contract, since there is no Physical Transfer.

I am not clear on the particular matter pointed in your post.... but let me get hold of somebody who might have a clearer view....!!!


SG
 

jk48

New Member
#3
Hi to all
I am from Durgapur, west-bengal. I have recently opened an account with Ventura Securities. I trade in NSE/Bank nifty futures. A problem has arises on deduction of stamp duty. The message they communicated to me that stamp duty is @0.002%. But on inter- day trade they are deducting @0.01%. So far I know the stamp duty rate on F&O trade is @0.002% on inter day basis and @0.01% on Delivery trading both on total Turnover of trade. I want to know what is the correct position?
 

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