can anyone answer it?
Some of the states have specifically included transfer of document electronically in the definition of instruments.
This might help http://www.mondaq.com/india/x/551162/Contract+Law/Electronic+Contracts+Applicability+Of+Stamp+Duty
U r right sir. Why I’m still paying stamp duty for this
STT, SEBI CHARGE, GST, STAMP and then income tax everything is eating up profits of traders
However those who can hold for 365 days (badi machli ) are exempted in the name of capital gains.
I’m planning to file an RTI to seek answer and justification of taxes that traders are paying apart from income tax. If anyone wants to give any input or points to be included please write in this thread
Investment is about your savings
Trading is business where u aim for high profit.
But that is not the basis of taxation. Govt needs money & takes it from easiest and largest basket. For example STT is applied only on stock and commodities but NOT on currencies why. FIIs can hedge INR in at Singapore / Dubai. So it is not easiest place to collect tax.
An excerpt from the book Rich Dad Poor Dad -
He explained that the idea of taxes was made popular, and accepted by the majority, by telling the poor and the middle class that taxes were created only to punish the rich. This is how the masses voted for the law, and it became constitutionally legal. Although it was intended to punish the rich, in reality it wound up punishing the very people who voted for it, the poor and middle class.
RTI cannot be applicable to ask for reasons behind a decision or “Why” of something. It may easily be rejected.
But you can frame the RTI questions in different way to ask for information/records/documents and copies of any documents/records related to decision to import STT, stamp duty etc.
My own articles with info on RTI: http://deveshwar.in/resources-practical-rti-sessions/
STT is not charged in commodities. It is not charged in commodities and currencies because the markets are not deep enough when compared to international markets(even lesser than the equity markets). Also, a lot of small goods traders and farmers need access commodities and currencies markets to hedge themselves against very big market swings in prices. Imposing STT on currency or commodity markets wont benefit much for the government.
STT is called as CTT for commodities. CTT is not charged for agri products only. For metals and energy we have to pay CTT. It is at same rate like Stock/Index futures in stock market.
I know this because I am a commodities trader and I am getting charged CTT daily.
As per the data no stamp duty on crude oil for Tamilnadu. I am in Chennai
@nithin please confirm this
Yep, check this link.
I dont remeber having paid stamp duty when i traded crude. That is sometime back
For all contracts a stamp duty will be charged, previously thy used to cap these charges max ₹50, so we traders would have not noticed that being charged but now most of the states have removed capping so we are seeing those charges now as they are so damn High.
This is the reason black economy flourishes, layer of taxes over taxes without proper explanation.
Its uber easy to get a loan in local market compared to getting it via banks cuz of all the extensive compliance n unnecessary bureaucratic nonsense.
i agree with you… i think GST was meant to remove all other taxes like STT, stamp duty etc. but no indirect taxes are removed even after the implimentation of GST. rather we were paying Service tax at aroud 12.5%, three years back and now we are paying 18% GST for the same services…so about 50% rise in the taxes!!! this is how government is robbing their own citizens…have heard 50% price rise in anything especially in taxes!!!
one thing is clear that if anyone is paying GST no other indirect taxes should be levied…however direct taxes like income tax is ok.
bottomline is : government is robbing its own citizens in the name of indirect taxes.
one more thing is … why the petrol and diesel are out of GST???
When Income Tax is treating Trading as Business then Only GST should be levied no STT, Stamp Duty etc.
same as regular business. if you buy for 10k for eg. with GST @ 5% then Seller will sell you at 10500/-
you may sell it for 11000 + GST @ 5% = 575. Net profit is 925. Gross profit - (output GST 575 - input GST 500)
Trading community should talk to govt. this will simplify the process of trading. Both State and Central Govt will get taxes.
Reduce complext calculations based on state, commoditiy, contract type, etc.
Two words: TAX TERRORISM
Trading community is not that large in number which ìs required to make an impact. Also they are not a votebank. The best solution which i have found is to become a non resident indian and be somewhere where there are no such extortion on the name of tax. I’m present in such a location and may become an NRI too. Here govt don’t levy such taxes (only tax is on dividends, none for traders)
No income tax. Its heaven
any updates you received any replies ?