SAT disposes of appeal
challenging Circular issued by the National Stock Exchange of India Limited
(‘NSE’), dated July 17, 2018, which inter alia prescribes collection of
Securities Transaction Tax (‘STT’) on physical settlement of stock derivatives;
Notes that (i) NSE had issued the circular, pursuant to SEBI’s circular on
“Review of framework for stocks in Derivatives segment” and (ii) accordingly,
46 scrips were identified for compulsory physical settlement, after the expiry
of the ongoing cycle of derivatives contracts; Accepts Appellant’s submission
that NSE’s caveat about waiting for clarification from the Central Board of
Direct Taxes (‘CBDT’) over ambiguity w.r.t. STT rate to be levied, is
impractical, as clients require clarity on the STT to be paid, and that given
the uncertainty, there could be severe repercussions on the securities market
(particularly in the derivatives segment); Rejects NSE’s contentions regarding
specification of the STT rate in Finance Act and its substantiation on the
caveat; Opines that “the circular does generate considerable
ambiguity… given the ambiguity the circular has generated and the
potential adverse effect it would have on the securities market it is in the
interest of justice for CBDT to consider the matter on top priority..”:SAT
Subscribe to:
Post Comments (Atom)
ITAT Special Bench allows deduction for provisioning made by banks on standard assets
This Tax Alert summarizes a Special Bench ruling of the Chandigarh Income-tax Appellate Tribunal (ITAT) in the case of Malwa Gramin Bank [...
-
· Legal Framework: Section 171 of the Income Tax Act, 1961 provides the legal framework for the partition of a Hindu Undivided...
-
New utility for generation of Form 16A in pdf format provided by https://www.tdscpc.gov.in is very light and is sized only 8.43 MB while ...
-
1. Introduction Cross-border investment structures often employ intermediate holding companies in jurisdictions like the Cayman Islands. A c...
-
A new website launched for TDS related matters www.tdscpc.gov.in TRACES – T DS R econciliation A nalysis and C orrection E nabling S yste...
-
Issue before the Income-tax Appellate Tribunal (ITAT) Whether the phrase “paid up capital and general reserves” should be defined as “Ne...
-
Facts Saptarshi Ghosh (the tax payer) was a salaried employee of TCS Limited (employer), an Indian company. He was on deputation to the U...
-
Introduction Employee welfare is a cornerstone of corporate responsibility, and gratuity forms a critical part of the social security benefi...
-
Selling a property can trigger a significant tax liability in the form of capital gains tax. However, the Income-tax Act, 1961, allows you...
-
In the complex landscape of India’s Goods and Services Tax (GST), the tax treatment of non-compete fees has emerged as a critical area f...
-
The newly enacted Income Tax Act, 2025, marks a significant step toward simplification by consolidating multiple presumptive taxation sche...
No comments:
Post a Comment