INSUBCONTINENT EXCLUSIVE:
The government has simplified the stamp duty collection process for listed securities, making it centralised at a unified rate.
So, from the
next financial year, stock exchanges will collect the stamp duty for trading stocks at a unified rate and deposit the proceeds with the
central government, which in turn will divide it among the states.
At present, brokers collect stamp duty at rates fixed by the state where
This provision will cover offmarket transactions that are not captured by stock exchanges.
The move, proposed in the interim budget on
Friday, will also end the tax advantage that brokerages and investors have been getting for routing their trade through some states with
cheaper stamp duty.
Several brokerages have been choosing their place of incorporation in destinations like Daman and Goa where the stamp
Bringing in uniform rate will put an end to such practices.
While the government has not yet announced the stamp duty rate applicable,
brokers are expecting Maharashtra stamp duty slabs to be used as the benchmark.
In such a scenario, investors from states such as Tamil Nadu
and Rajasthan will see a fall in their stamp duty outgo, while investors from Haryana, Telangana, Uttar Pradesh, Odisha and Assam will end
up paying higher stamp duties
The tax outgo will remain unchanged for states such as Gujarat, West Bengal and Kerala.
Experts said the move will also ease the compliance
Motilal Oswal Financial Services.
