STT will be charged as delivery trade.
Hi newtrader001,
Lets me put it in simple terms.
Case1. You buy the stock today morning as CNC and sell the stock today itself before 3:20 pm as CNC. You are at T+0 day. Even though you have chosen the product type as CNC, you will be charged with Intraday charges only (i.e. STT of 0.025% see here http://zerodha.com/charge-list). Also there will not be any DP charges (flat Rs.13 per scrip only) in your demat account, since you have sold on same day.
Case2. You buy the stock yesterday morning as CNC and sell the stock as CNC anytime today. This is BTST concept (Buy Today and Sell Tomorrow). You are at T+1 day. In this case you need to pay all the charges as per Delivery trade since you have bought the stock and kept it overnight. So STT will be charged at the rate of 0.1%. But here since the stocks will be delivered to your demat account only by today evening (T+1 day evening or maximum T+2 day tomorrow morning), you are selling the stock before it reaches your demat account. So there will not be any DP charges in your Demat Account.
Case3. You buy the stock day before yesterday morning as CNC and sell the stock today anytime as CNC. You are at T+2 day. You will be charged like a normal Delivery charges. i.e STT of 0.1% will be charged, like usual. Since shares are already delivered to your demat account, yesterday evening or today morning, you have to bear the DP charges of Rs.13 also.
Case4. You buy the stock anytime 2 days before yesterday. That is you are at today T+3 or T+4 day, etc. In this case you need to bear charges similar to case 3. Both STT of 0.1% and DP charges of Rs.13. But here there is no risk of Short Delivery or Auction penalty, since the shares will be confirmed present in your demat account. In first 3 cases, you may face (very rare chance) of Auction Penalty, in case the seller whom from who bought the shares failed to give you the shares and defaulted.
T0 day – STT 0.025% - No DP Charges – No risk of auction penalty
T1 day – STT 0.1% - No DP charges – Risk of auction penalty
T2 day – STT 0.1% - DP charges applicable – Risk of action penalty
T3 day – STT 01.% - DP charges applicable – No risk of action penalty
Hope you understand. Cheers! :)
8 Likes
Reproducing from the weblink:
|
Product |
Transaction |
STT rate |
Charged on |
|
Equity-Delivery |
Purchase |
0.10% |
Turnover |
|
Sell |
0.10% |
Turnover |
|
|
Equity-Intraday |
Purchase |
- |
- |
|
Sell |
0.025% |
Turnover |
|
|
Future |
Purchase |
- |
- |
|
Sell |
0.010% |
Turnover |
|
|
Option |
Purchase |
0.125% |
Settlement price, on exercise |
|
Sell |
0.017% |
Premium |
Also, note that the trading of Currency derivatives doesnot have STT charges. :-))
1 Like
Dear Nithin Sir,
I am a bit confused here.
Reference:
Excerpt:
First Scenario: You bought at Rs. 800 in the morning and by 3 PM you saw the price is Rs. 810. You decided to book the profit and you sold the Reliance as CNC. Though you have bought and sold as CNC, this will be considered as an intraday trade and all taxes/brokerage will be according to intraday charges.
It is stated here that all brokerages for BTST/ATST are charged according to intraday charges.
I am confused whether STT for BTST transactions are charged as per delivery or intraday?
Pl pl pl reply sir…
In the above case, the trade will be considered as an Intraday trade and all charges as applicable to Intraday will be applied. STT @ 0.025% on sell side will be charged.
BTST is not the same as Intraday trade. BTST is considered as a delivery trade and Delivery STT is applicable.
Dear Sameer Bhagat sir,
At the end of ur ans u have mentioned that BTST is considered as a delivery trade and Delivery STT is applicable. It is still not clear to me as u have given the STT as 0.025%. Can u pl clarify my doubt once again sir?
Thanks for ur ans…
Check this link https://zerodha.com/charge-list STT is different for intraday (0.025% on the Sell Side ) and delivery. (0.1% on both Buy and Sell ). BTST means Buy today sell tomorrow so you are buying share as delivery and selling it tomorrow hence delivery charges r charged. People generally use this with other brokarage firms as they get margin for t+5 (on intrest ofcource) and they can make quick money with it in 2-3 days. Its not for zerodha since they dont give margin for deliveries.
Thank u very much AastroGuru Sir for your detailed answer. Your answer is excellent.
How much could be the auction Penality? Maximum and minimum?
If i sell the stock on T+2 day(on wednesday), How there will be the risk of auction penality because anyhow i will get the delivery of stock on thursday (If i had bought it on monday). And I have to give the delivery on Friday
@Prash
This is what i understand. The auction happens on T+3 day and you get delivery on T+4 th day morning, So there is a chance you would default
Hi buddy I’m new trader and interested in Delivery Trading soI wanted to ask you that I can’t do next trade until the previous settlement is complete right? Also what is Short Delivery & Auction means in this? I’m not getting the concept.