The additional marketing platform does not have a transaction tax. VAT is a multi-point tax on each of the supply chain companies, in plain words. If a PT falls within one of the statutory exemptions under IRC 4975(d), the excise tax may not apply. Lastly, there’s a securities transaction tax charged on all transactions carried out in a stock exchange. DIRECT TAX; INDIRECT TAX; DIRECT TAX. Off-market share transactions are not covered under STT. A PT means any direct or indirect transaction described in IRC 4975(c)(1) between the plan and a DP. On 20th September 2019, as anticipated, the all-powerful Goods & Services Tax Council (hereinafter ‘Council’), in its 37th Meeting held in Goa, took certain key decisions. This tax is levied on stock market and securities trading. The objective behind the levy is to mitigate tax evasion as the same is taxed at source. Here is the list of main indirect taxes in India with details. Commodities Transaction Tax It is governed by finance act. The most prominent point about securities transaction tax is that STT charge is applicable only on share transactions made through a recognized stock exchange in the country. Securities Transaction Tax (STT) is a type of financial transaction tax levied in India on transactions done on the domestic stock exchanges. ... SECURITIES TRANSACTION TAX. Description: STT was introduced in the Budget of 2004 and implemented in Oct 2004. All these taxes are called indirect taxes because unlike a direct tax, the person paying the tax can pass it on to another party. Securities Transaction Tax (STT) STT is a tax collected on all stock exchange transactions. Indirect Taxes in India: Receipts from indirect taxes are a very important source of tax revenue for the Central Government in India. Securities Transaction Tax: STT is a kind of turnover tax where the investor has to pay a small tax on the total consideration paid or received in a share transaction. These taxes cannot be transferred to any other entity or person. Direct tax can help in reducing inflation, whereas indirect tax may enhance inflation. This tax is levied on sale of commodity derivates. In the budget for 2013-14 Securities Transaction Tax on equity futures has been cut from 0.017 per cent to 0.01 per cent. In 2013-14 security transaction tax (STT) was expected to yield Rs. B. In tax parlance, this is categorised as a direct tax.. This tax is levied on sale of securities (Shares/debentures) What are the Types of Indirect Taxes in India. The rates of STT are prescribed by the Central / Union Government through its Budget from time to time. 6. A direct tax is a tax that you directly pay to the authority imposing the tax. The Income Tax Department NEVER asks for your PIN numbers, passwords or similar access information for credit cards, banks or other financial accounts through e-mail.. 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