Revenue department notice surprises VSE brokers

The notice issued by the revenue department of the state government demanding the transaction details has bewildered the stock brokers registered with the Vadodara Stock Exchange (VSE).

At present, like many other regional stock market, VSE is defunct as no transactions are made through it. But the notice demands the brokers to furnish details of their transactions carried in last three years. The state government aims at valuing the transactions and charging stamp duty accordingly.

The chief executive officer of VSE Stock Services Ltd, the wholly owned subsidiary of VSE, Dishant Sagwaria, said: "We have learned that a number of stock brokers, registered with the VSE, has received notice from the revenue department for stamp duty purpose. Interestingly, there has not been any transaction carried on the VSE in the last 3-4 years. It is an old provision of the state government but brokers are not liable to pay stamp duty to the state government as they are now dealing with the Bombay Stock Exchange."

"The revenue department should know that the VSE is defunct. We will approach VSE to issue us a certificate stating that no transactions have been taken place in the given period," said a broker.

"For the time being it seems unproblematic but we do not know what the state revenue department intends by this," added another broker.