Value Added Tax (VAT): It is a tax on the estimated market value added to a product or material at each stage of its manufacture or distribution, ultimately which is passed on to the consumer. Share trading on the stock market is subject to this tax. As per reports, the … Securities Transaction Tax. Daily Quiz: UPSC Prelims Marathon (Economy)|November 3,2020. Indirect Taxes in India. IV. 6. Wealth Tax. This tax was introduced in Union Budget 2004 and came into effect from October 1, 2004. Corporate Tax. In this article, get 10 most important questions on the Money & Banking topic of Indian Economy Aspirants of UPSC Civil Services Prelims 2021 … An Indian firm whose turnover is less than Rs. The tax makes markets unattractive as it leads to significant taxation of corporate earnings, they argue. Written by: ForumIAS Posted on November 3rd, 2020 Last modified on November 3rd, 2020 Comments Views : 4,860. It is governed by the Securities Transaction Tax Act (STT Act). Banking Cash Transaction Tax (BCTT) V. Securities Transaction Tax (STT) 1. This regime is seen as inherently biased against manufacturing and has encouraged diversion of investment to financial assets. For every share purchase or sale, you pay the Securities Transaction Tax. Tax on the short-term capital gain if securities transaction tax is applicable: If securities transaction tax is applicable, the short-term capital gain is taxable at the rate of 15% +surcharge and education cess. According to tax experts, some relief may also be provided on short-term capital gains (STCG) and securities transaction tax (STT). Direct tax-A direct tax is generally a tax paid directly to the government by the person on whom it is imposed.Eg-. Securities Transaction Tax (STT)- Applicability, levy and collection, income tax implications Updated on Jan 04, 2021 - 07:52:37 PM It is quite common for taxpayers to resort to tax evading measures to save their tax outflow to the Government. 1 crore is not subject to this tax. Securities Transaction Tax (STT): STT is a tax levied on all transactions done on the stock exchanges. Securities and Transaction Tax [STT] It is a tax levied at the time of purchase and sale of securities listed on stock exchanges in India. Income tax, corporation tax, wealth tax, capital gains tax, securities transaction tax