GK
TAXES IN INDIA
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Standard Transfer tax
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Securities Transfer tax
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Standard Transaction Tax
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Securities Transaction tax
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Detailed explanation-1: -Securities Transaction Tax (STT) is a tax payable in India on the value of securities (excluding commodities and currency) transacted through a recognized stock exchange.
Detailed explanation-2: -Securities Transaction Tax (STT) is a type of turnover tax where the investor is obliged to pay a tax on the total sum received or paid in a transaction done through an exchange. STT is not applicable for commodities and currency transactions and on transactions outside of the exchange.
Detailed explanation-3: -Securities Transaction Tax is a direct tax charged on purchase and sale of securities that are listed on the recognized stock exchanges in India. STT is always calculated on the Average Price. The exchange does not follow the FIFO (First In First Out) or LIFO (Last In First Out) methods to compute the STT.