INTERVIEW QUESTIONS TAX SECURITIES TRANSACTION TAX DETAILS

Question: What are the main features of Securities Transaction Tax (STT)?

Answer: STT is a simple direct tax and is not very complicated to calculate or levy. Some of the most distinguishing features of STT are as listed below:-

STT is levied on all sell transactions for both options as well as futures.
For purpose of STT calculation, each future trade is valued at the actual traded price while each option trade is valued at premium.
The amount STT that a clearing member has to pay is the sum total of all the STT taxes of trading members under him.

STT is a simple direct tax and is not very complicated to calculate or levy. Some of the most distinguishing features of STT are as listed below:-

STT is levied on all sell transactions for both options as well as futures.
For purpose of STT calculation, each future trade is valued at the actual traded price while each option trade is valued at premium.
The amount STT that a clearing member has to pay is the sum total of all the STT taxes of trading members under him. Source: CoolInterview.com

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