Now, Chhattisgarh asks for stamp duty for exchange transactions

Says resident investors should pay cess to the state

The Chhattisgarh government has written to BSE, asking it to ensure stamp duty is paid to the state for share transactions done by its residents.

The state government had made a provision for bringing share transactions under the stamp duty regime through a notification in March 2014. The stamp duty rate works out to Rs 1 per transaction of Rs 10,000, or 0.01 per cent.

“It has been observed that though such transactions are being conducted by clients based in Chhattisgarh, no revenue is being remitted to our state. Hence, kindly instruct the brokers, sub-brokers, authorised persons registered with you to remit the stamp duty these transactions,” the government said to the BSE. The bourse has uploaded the letter on its website. Stock brokers have previously brought up the non-uniform nature of applying stamp duty. While some states apply it depending on where the broker’s office is located, others look at where the client is situated, while a third set might see where the order is executed.

 

Other states that have sought to enforce stamp duty include Tamil Nadu and Maharashtra. “Kindly make arrangements to provide us with details of monthly transaction turnover broker, sub broker, or authorised person wise and stamp duty collected respectively,” said the letter.