Securities Transaction Tax (STT) is a tax levied on shares, securities, and stock transactions. Investors pay a small tax on the total consideration paid or received, which is then remitted to the Government through the Exchange.
STT Charges Breakdown
Types of Charges and Rates:
· Equity Intraday: 0.025% (On Sell Side)
· Equity Delivery: 0.1% (Both Buy and Sell Side)
· Derivatives:
o Futures: 0.0125% (On Sell Side)
o Options: 0.0625% (On Sell Side Premium)
o On Exercise: 0.125% (On intrinsic value of options bought and exercised)
· Currency: Not Applicable
· Commodities: Not Applicable
Examples
Equity Transactions:
1. Intraday Transaction:
o Bought 100 shares at ₹100, sold at ₹105.
o Intraday transaction STT: 100×105×0.025%=₹2.625100
2. Delivery Transaction:
o Bought 50 shares at ₹110.
o Delivery transaction STT: 50×110×0.1%=₹5.550
Derivatives Transactions:
1. Futures:
o 1 Lot of ITC Future Contract (1600 units), Price per unit: ₹495.
o Contract value: 1600×495=₹7,92,000
o STT: 0.0125%×7,92,000=₹99
2. Options:
o 1 Lot of ITC Call Option (1600 units), Strike price: ₹490, Premium received: ₹20.
o Premium value: 1600×20=₹32001600
o STT: 0.0625%×3200=₹2
3. Exercised Contract:
o 1 Lot of ITC Call Option (1600 units), Strike price: ₹490, Spot price: ₹496.20.
o Intrinsic value: (496.20−490)×1600=₹9920(496.20 - 490)
o STT: 0.125%×9920=₹12 (rounded down).
Detailed List of Charges in Contract Notes
Equity:
· Brokerage: 2.5% or ₹20 per executed order, whichever is lower.
· STT/CTT:
o Delivery: 0.1% on both buy and sell.
o Intraday: 0.025% on sell side.
o Futures: 0.0125% on sell side.
o Options: 0.0625% on sell side (on premium), 0.125% on intrinsic value when exercised.
· Transaction Charges:
o NSE: 0.00325% (Delivery & Intraday), 0.0019% (Futures), 0.05% (Options on premium).
o BSE: 0.00375% (Delivery & Intraday), 0% (Futures), 0.005% (Options on premium).
· GST: 18% on (brokerage + SEBI charges + transaction charges).
· SEBI Charges: ₹10 per crore.
· Stamp Charges:
o Delivery: 0.015% or ₹1500 per crore on buy side.
o Intraday: 0.003% or ₹300 per crore on buy side.
o Futures: 0.002% or ₹200 per crore on buy side.
o Options: 0.003% or ₹300 per crore on buy side.
Currency Derivatives:
· Brokerage: 2.5% or ₹20 per executed order, whichever is lower (Futures), ₹20 per executed order (Options).
· STT/CTT: No STT.
· Transaction Charges:
o Futures: 0.0009%.
o Options: 0.035%.
· GST: 18% on (brokerage + SEBI charges + transaction charges).
· SEBI Charges: ₹10 per crore.
· Stamp Charges: 0.0001% or ₹10 per crore on buy side.
Commodity Derivatives:
· Brokerage: 0.03% or ₹20 per executed order, whichever is lower (Futures), ₹20 per executed order (Options).
· STT/CTT:
o Futures: 0.01% on sell side (Non-Agri).
o Options: 0.05% on sell side.
· Transaction Charges:
o Futures: 0.0026%.
o Options: 0.05%.
· GST: 18% on (brokerage + SEBI charges + transaction charges).
· SEBI Charges:
o Agri: ₹1 per crore.
o Non-Agri: ₹10 per crore.
· Stamp Charges:
o Futures: 0.002% or ₹200 per crore on buy side.
o Options: 0.003% or ₹300 per crore on buy side.
This breakdown helps in understanding the STT and other related charges in different types of transactions, making it easier to calculate and comprehend the cost implications of trading activities.