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Consider the following statements regarding Securities Transaction Tax (STT).
- STT is an indirect tax levied on every purchase and sale of securities that are listed on the recognized stock exchanges in India.
- Taxable securities include equity, derivatives and equity oriented mutual fund.
- The term ‘securities’ is defined in Securities Contracts (Regulation) Act, 1956.
Which of the above statements is/are correct?
- a)1, 2
- b)1, 3
- c)2, 3
- d)1, 2, 3
Correct answer is option 'C'. Can you explain this answer?
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Consider the following statements regarding Securities Transaction Tax...
Correct statement regarding Securities Transaction Tax (STT)
Statement 1: STT is an indirect tax levied on every purchase and sale of securities that are listed on the recognized stock exchanges in India.
- This statement is correct. STT is a tax levied on securities transactions executed through recognized stock exchanges in India. It is applicable to both buyers and sellers and is deducted at the time of the transaction.
Statement 2: Taxable securities include equity, derivatives and equity-oriented mutual funds.
- This statement is correct. Securities such as equity shares, derivatives, and equity-oriented mutual funds are subject to STT. Other securities like bonds and debentures are exempt from this tax.
Statement 3: The term 'securities' is defined in the Securities Contracts (Regulation) Act, 1956.
- This statement is correct. The Securities Contracts (Regulation) Act, 1956 defines securities as instruments such as shares, bonds, debentures, and derivatives. These instruments are traded on stock exchanges and are subject to STT.
Therefore, the correct statements regarding STT are 2 and 3. STT plays a crucial role in generating revenue for the government and regulating securities transactions in the Indian stock market.
Statement 1: STT is an indirect tax levied on every purchase and sale of securities that are listed on the recognized stock exchanges in India.
- This statement is correct. STT is a tax levied on securities transactions executed through recognized stock exchanges in India. It is applicable to both buyers and sellers and is deducted at the time of the transaction.
Statement 2: Taxable securities include equity, derivatives and equity-oriented mutual funds.
- This statement is correct. Securities such as equity shares, derivatives, and equity-oriented mutual funds are subject to STT. Other securities like bonds and debentures are exempt from this tax.
Statement 3: The term 'securities' is defined in the Securities Contracts (Regulation) Act, 1956.
- This statement is correct. The Securities Contracts (Regulation) Act, 1956 defines securities as instruments such as shares, bonds, debentures, and derivatives. These instruments are traded on stock exchanges and are subject to STT.
Therefore, the correct statements regarding STT are 2 and 3. STT plays a crucial role in generating revenue for the government and regulating securities transactions in the Indian stock market.
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Consider the following statements regarding Securities Transaction Tax...
What is Securities Transaction Tax?
STT is a kind of financial transaction tax which is similar to tax collected at source (TCS). STT is a direct tax levied on every purchase and sale of securities that are listed on the recognized stock exchanges in India. STT is governed by Securities Transaction Tax Act (STT Act) and STT Act has specifically listed down various taxable securities transaction i.e., transaction on which STT is leviable.
STT is a kind of financial transaction tax which is similar to tax collected at source (TCS). STT is a direct tax levied on every purchase and sale of securities that are listed on the recognized stock exchanges in India. STT is governed by Securities Transaction Tax Act (STT Act) and STT Act has specifically listed down various taxable securities transaction i.e., transaction on which STT is leviable.
Taxable securities include equity, derivatives, unit of equity oriented mutual fund. It also includes unlisted shares sold under an offer for sale to the public included in IPO and where such shares are subsequently listed in stock exchanges. STT is an amount to be paid over and above transaction value and hence, increases transaction value.
The term ‘securities’ is defined in Securities Contracts (Regulation) Act, 1956.
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Consider the following statements regarding Securities Transaction Tax (STT). STT is an indirect tax levied on every purchase and sale of securities that are listed on the recognized stock exchanges in India. Taxable securities include equity, derivatives and equity oriented mutual fund. The term ‘securities’ is defined in Securities Contracts (Regulation) Act, 1956.Which of the above statements is/are correct?a)1, 2b)1, 3c)2, 3d)1, 2, 3Correct answer is option 'C'. Can you explain this answer?
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Consider the following statements regarding Securities Transaction Tax (STT). STT is an indirect tax levied on every purchase and sale of securities that are listed on the recognized stock exchanges in India. Taxable securities include equity, derivatives and equity oriented mutual fund. The term ‘securities’ is defined in Securities Contracts (Regulation) Act, 1956.Which of the above statements is/are correct?a)1, 2b)1, 3c)2, 3d)1, 2, 3Correct answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements regarding Securities Transaction Tax (STT). STT is an indirect tax levied on every purchase and sale of securities that are listed on the recognized stock exchanges in India. Taxable securities include equity, derivatives and equity oriented mutual fund. The term ‘securities’ is defined in Securities Contracts (Regulation) Act, 1956.Which of the above statements is/are correct?a)1, 2b)1, 3c)2, 3d)1, 2, 3Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding Securities Transaction Tax (STT). STT is an indirect tax levied on every purchase and sale of securities that are listed on the recognized stock exchanges in India. Taxable securities include equity, derivatives and equity oriented mutual fund. The term ‘securities’ is defined in Securities Contracts (Regulation) Act, 1956.Which of the above statements is/are correct?a)1, 2b)1, 3c)2, 3d)1, 2, 3Correct answer is option 'C'. Can you explain this answer?.
Consider the following statements regarding Securities Transaction Tax (STT). STT is an indirect tax levied on every purchase and sale of securities that are listed on the recognized stock exchanges in India. Taxable securities include equity, derivatives and equity oriented mutual fund. The term ‘securities’ is defined in Securities Contracts (Regulation) Act, 1956.Which of the above statements is/are correct?a)1, 2b)1, 3c)2, 3d)1, 2, 3Correct answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements regarding Securities Transaction Tax (STT). STT is an indirect tax levied on every purchase and sale of securities that are listed on the recognized stock exchanges in India. Taxable securities include equity, derivatives and equity oriented mutual fund. The term ‘securities’ is defined in Securities Contracts (Regulation) Act, 1956.Which of the above statements is/are correct?a)1, 2b)1, 3c)2, 3d)1, 2, 3Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding Securities Transaction Tax (STT). STT is an indirect tax levied on every purchase and sale of securities that are listed on the recognized stock exchanges in India. Taxable securities include equity, derivatives and equity oriented mutual fund. The term ‘securities’ is defined in Securities Contracts (Regulation) Act, 1956.Which of the above statements is/are correct?a)1, 2b)1, 3c)2, 3d)1, 2, 3Correct answer is option 'C'. Can you explain this answer?.
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