New Delhi: The government Friday proposed to bring in a single stamp
duty rate for all financial securities transactions, a move that would help in
reducing procedural requirements for brokers.
The proposal is part of the Finance Bill 2019-20 introduced
by Finance Minister Piyush Goyal after presentation of the Interim Budget.
In his speech, he said, the government last year promised
that it would carry out reforms in stamp duty levied and collected on financial
securities transactions.
Amendments have been proposed to the Indian Stamp Act.
“The amendments proposed would usher in a very
streamlined system. Stamp duties would be levied on one instrument relating to
one transaction and get collected at one place through the stock
exchanges,” Goyal said.
He also said the duty collected would be shared with the
state governments seamlessly on the basis of domicile of buying client.
HDFC Securities MD and CEO Dhiraj Relli said the government
has proposed to have a single stamp duty rate on securities transactions across
the country and that it would help in avoiding litigations and procedural
hassles.
The brokering industry has been demanding for a single rate
for many years, he added.
The move to have a single stamp duty rate would not have an
impact on Securities Transaction Tax (STT) since the latter is levied on
transaction value, excluding stamp duty, according to experts.