New Delhi, June 20:
From July 1, Commodities Transaction Tax (CTT) will be levied on all
derivative contracts of non-agricultural commodities transacted through
recognised commodity bourses.
As many as 23 specified agricultural commodities have been exempted from
this levy, a Central Board of Direct Taxes (CBDT) official said.
All processed agricultural items including sugar, soya oil and guar gum will be subject to CTT on their futures contracts.
The levy of CTT, at a rate of 0.01 per cent on contract price, may
impact turnover in the commodity bourses. This is because a higher
transaction cost may squeeze day traders’ margins, say market observers.
The flip side to this argument is that the commodity markets have
already factored in the CTT and hence the turnover may not be impacted
in a big way.
The agricultural commodities on which the tax will not apply include almond, barley, cardamom, castor seed, channa, copra, coriander, cotton seed and cotton, pepper, potato, mustard seed, red chilli, soya bean, turmeric and wheat.
Source: http://www.thehindubusinessline.com/industry-and-economy/23-agricommodities-exempted-from-transaction-tax/article4834392.ece
