HC upholds NSE's move to levy higher STT on physically settled contracts

The Bombay High Court on Tuesday has upheld the National Stock Exchange’s (NSE) move to levy higher Securities Transaction Tax (STT) on derivative contracts that are settled physically. 

A lobby of brokers had moved the court, to seek clarity on the STT slab applicable to stocks for which the markets regulator had made physical settlement mandatory. 

The decision of the Bombay High Court comes after the Central Board of Direct Taxes (CBDT) told the court on Tuesday that 0.10 per cent STT would be levied on physical delivery of shares in the equity derivatives segment. This is ten times the normal STT