Efforts on to rationalise STT, decision likely in next budget

“The idea is to rationalise STT so that the volumes in the capital markets increase without sacrificing revenue,” a finance ministry official said after a meeting with the representatives of stock exchanges, brokers associations and SEBI

New Delhi: Efforts are on to rationalise the Securities Transaction Tax (STT), a tax levied on sale and purchase of equity, and a decision in this regard could be taken in the 2012 Budget, reports PTI quoting a finance ministry official.

“The idea is to rationalise STT so that the volumes in the capital markets increase without sacrificing revenue,” he said after a meeting of finance ministry officials with the representatives of stock exchanges, brokers associations and Securities and Exchange Board of India (SEBI).

During the meeting, stock brokers urged the finance ministry to remove STT as it was hampering growth of the equity culture in the country.

The finance ministry official, however, ruled out abolition of the levy but said the government would look take on board the concerns of the stock-broking community and was open to rationalise STT.

STT ranges from 0.0125% to 0.025% on sale and purchase of equity. The government collects about Rs7,500 crore per annum from STT.

The ministry, according to the official, will hold another round of discussion on STT with stakeholders in the first week of November.

Market players have been demanding withdrawal of STT ever since it was introduced in 2004. It is argued that STT accounts for 51% of the transaction cost.

The removal of STT would boost volumes on stock markets, according to BSE CEO Madhu Kannan, who attended Monday’s meeting.

“STT was definitely one of the reasons affecting trading in the cash segment,” Mr Kannan said.

Among other issues, the meeting also discussed the possibility of treating STT as advance tax, as was the earlier practice. Under the present norms, STT is treated as business expense and has a bearing on profitability.

“Reverting to the earlier practice would have a similar affect as reduction in the STT,” the official added.

Besides other demands, representatives of the broking community also urged the government not to levy STT on SME exchanges which were likely to become operational on BSE and NSE by mid-December.

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TCS posts 6% growth in consolidated net at Rs2,301 crore

The company made a net addition of 12,580 employees, taking its total headcount to 2,14,770. During the quarter under review TCS added 35 new clients

TCS has posted a net profit after tax of Rs3,187.11 crore for the quarter ended 30 September 2011 up 76% over Rs1,812.65 crore in the previous corresponding quarter. Total Income has increased to Rs1,0749.72 crore from Rs7,370.67 crore for the quarter ended 30 September 2010 translating into a growth of 46%

On a consolidated basis, the group has posted a net profit of Rs2,301 crore for the reporting quarter, a 6% rise compared to Rs2,169.21 crore in the year-ago period. The consolidated total income went up by 26% to Rs11,756.18 crore for the quarter ended 30 September 2011 from Rs9,357.14 crore a year ago.

The board of directors proposed an interim dividend of Rs3 per share to shareholders.

The company made a net addition of 12,580 employees, taking its total headcount to 2,14,770. During the quarter under review TCS added 35 new clients.

At the end of 30 September 2011, cash and bank balance of the company stood at Rs7,036.79 crore.

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Federal Bank, Oriental Insurance launch Fed Oriental Pravasi Insurance policy

Fed Oriental Pravasi Insurance policy provides its NRI customers a host of covers which include Repatriation Cover, Legal/litigation cover, Hospitalization cover, Personal accident cover, Medical floater cover for family as well as maternity benefit

Federal Bank, the Kerala based private bank announces its tie up with the Oriental Insurance Company Ltd to launch the ‘Fed Oriental Pravasi Insurance policy’. This scheme comes with a wide range of benefits and provides its NRI customers cover for not just the normal hospital expenses but also unforeseen eventualities such as repatriation, accidents etc.  

Fed Oriental Pravasi Insurance policy provides its NRI customers a host of covers which include Repatriation Cover, Legal/litigation cover, Hospitalization cover, Personal accident cover, Medical floater cover for family as well as maternity benefit.

Fed Oriental Pravasi Insurance Policy offers its NRI customers unique features which include all new SB NRE customers of the bank possessing a minimum balance of Rs5,000 onwards are eligible for the scheme; provision of cashless treatment facility over in over 3000+ hospitals pan India and premium for the first year will be borne by Federal Bank.     An NRI customer can submit a simple proposal form with blanket insurance formalities along with the NRE–account opening form. The emigrant customer can go to any of the listed hospitals along with Pravasi Insurance card, Federal bank A/c No and passport for availing the facility. The medical floater cover for family is available in the event of death or disability of insured.

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