Master Circular Finance March 2018 Limited Finance and Accounts Department 2 Master Circular March 2018 Finance and Accounts Department CONTENTS I. Direct Tax Matters3 1. Non deduction

BSE Limited

Master Circular March 2018Finance and Accounts Department

April 2, 2018

Dear Sir / Madam,

Sub: Master Circular for trading members / customers

The Finance department of BSE has issued various notices / circulars fromtime to time on subject matter such Direct Tax, Securities Transactions Tax,Members TDS refund etc. In order to enable the users to have an access toall the applicable notices / circulars at one place, a Master Circular in regardshas been prepared.

This Master Circular is a compilation of the notices / circulars issued by theFinance & Accounts Department of BSE up to March 31, 2018.

In case any additional clarification / guidance is required, you may contactMr. Harihara Subramanian on 2272 8522 [email protected].

For and on behalf of BSE Limited.

Girish Amesara Nimeshkumar MistryFinancial Controller Deputy General ManagerFinance & Accounts Finance & AccountsDate: April 3, 2018

BSE LimitedFinance and Accounts Department

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Master Circular March 2018Finance and Accounts Department

CONTENTS

I. Direct Tax Matters ..........................................................................................................3

1. Non deduction of TDS on GST on services element of Tax Invoices ...................................... 3

2. Amendment of Income Tax Rule 6DDA with respect to transactions on Stock

Exchange ......................................................................................................................................................... 3

3. Notification of BSE as a recognized Stock Exchange under clause (d) of the proviso to

clause (5) of Section 43 of the Income Tax....................................................................................... 4

II. Securities Transaction Tax ...........................................................................................5

1. Securities Transaction Tax (STT) Rates............................................................................................. 5

2. STT on Institutional Transactions........................................................................................................ 6

3. Remittance of Excess STT collected by Members .......................................................................... 7

III. GOODS AND SERVICES TAX ...........................................................................................8

1. Circular on applicability of Goods and Services Tax..................................................................... 8


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I. DIRECT TAX MATTERS

1. Non deduction of TDS on GST on services element of Tax Invoices

As per CBDT Circular No: 23/20017 dated July 19, 2017 read with No 1/ 2014

dated January 13, 2014, wherever in terms of the agreement/contract between

the payer and the payee, the ‘GST on services’ component comprised in the

amount payable to a resident is indicated separately, tax is required to be

deducted at source under Chapter XVII-B of the Act on the amount paid / payable

without including such GST on services component. GST for these purpose shall

include Integrated Goods and Service Tax, Central Goods and Services Tax, State

Goods and Services Tax and Union Territory Goods and Services Tax.

2. Amendment of Income Tax Rule 6DDA with respect to transactions on Stock

Exchange

CBDT Notification No. 14/2011 dated 9th March, 2011/F.No.142/25/2008-SO

(TPL) has amended Income-tax Rule 6DDA effective from 01st April, 2011 as

follows -

“1. The Stock Exchange shall ensure that transactions (in respect of cash and

derivative market) once registered in the system are not erased; and

2. The Stock Exchange shall ensure that the transactions (in respect of cash and

derivative market) once registered in the system are modified only in cases

of genuine error and maintain data regarding all transactions (in respect of

cash and derivative market) registered in the system which have been

modified and submit a monthly statement in Form No. 3BB to the Director

General of Income-tax (Intelligence), New Delhi within fifteen days from the

last day of each month to which such statement relates to.”


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3. Notification of BSE as a recognized Stock Exchange under clause (d) of the proviso

to clause (5) of Section 43 of the Income Tax

BSE is notified as a recognised Stock Exchange for the purpose of clause (d) of

proviso to clause (5) of Section 43 of the Income Tax Act, 1961 w.e.f. 25th January

2006. Accordingly, Derivative trades carried out on the Exchange trading platform

will not be deemed to be speculative transaction till such time the recognition

granted to the Exchange is not withdrawn.


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II. SECURITIES TRANSACTION TAX

1. Securities Transaction Tax (STT) Rates

Securities Transaction Tax (STT) was introduced in Chapter VII of the Finance (No.

2) Act 2004. The same is chargeable as per the rates given below -

Sr.No.

Taxable Securities Transactions Effectivetill

31.05.16

Effectivefrom

01.06.16

Payableby

1. Purchase of an equity share in a company, where

–

(a) the transaction of such purchase is entered

into in a recognised stock exchange; and

(b) the contract for the purchase of such share is

settled by the actual delivery or transfer of such

share.

0.1% 0.1% Purchaser

1.A Purchase of an unit of an equity oriented fund,

where -

(a) the transaction of such purchase is entered

into in a recognised stock exchange; and

(b) the contract for the purchase of such unit is


unit.

NIL NIL -

2. Sale of an equity share in a company, where -

(a) the transaction of such sale is entered into

in recognised stock exchange; and

(b) the contract for the sale of such share is


share.

0.1% 0.1% Seller

2A. Sale of an unit of an equity oriented fund, where

-

(a) the transaction of such sale is entered into in

a recognised stock exchange; and

0.001% 0.001% Seller


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Sr.No.

Taxable Securities Transactions Effectivetill

31.05.16

Effectivefrom

01.06.16

Payableby

(b) the contract for the sale of such unit is settled

by the actual delivery or transfer of such unit.

3. Sale of an equity share in a company or a unit of

an equity oriented fund, where --

(a) the transaction of such sale is entered into in

a recognised stock exchange; and

(b) the contract for the sale of such share or unit

is settled otherwise than by the actual delivery

or transfer of such share or unit.

0.025% 0.025% Seller

4. (a) Sale of an option in securities. 0.017% 0.050% Seller

(b) Sale of an option in securities where option

is exercised.

0.125% 0.125% Purchaser

(c) Sale of a futures in securities. 0.01% 0.01% Seller

2. STT on Institutional Transactions

All institutional Buy and Sell transactions are treated separately for the calculation

of STT and all these transactions are treated as delivery based transactions. No

netting of institutional transactions is allowed for the calculation of STT and the

STT applicable on delivery based transactions is being levied on such transactions.


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3. Remittance of Excess STT collected by Members

This has reference to notice no. JCIT/Range 7(2)/STT Asst. /2015-16 dated

13.10.2016 issued by Joint Commissioner of Income Tax, Range – 7(2), Mumbai.

This notice was issued to draw attention towards excess STT collected by some

brokers/sub-brokers, which is not being remitted to the Government account.

Hence, as per the instructions of the income tax department, a circular is hereby

issued to the member brokers, requesting to furnish details of excess STT collected

and retained with them for FY 2014-15 and for preceding years as on 31.03.15

directly to the below mentioned address:

O/o The Joint Commissioner of Income TaxRange-7(2),

Room No 625, 6th Floor,Aayakar Bhavan, M.K. Road,

Mumbai – 400020

The letters may be captioned as ‘Excess STT Retained – BSE’. The details

pertaining to the above mentioned subject has to be submitted to the above

mentioned address within 15 days from the date of issue of this circular. Also, the

excess amount so collected needs to be remitted to the Government Account

immediately.

In case of any clarification, trading members may contact the following official on

the telephone number and email id given below

Mr. Harihara SubramanianTel.No.022 2272 8522Email ID: [email protected]


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III. GOODS AND SERVICES TAX

1. Circular on applicability of Goods and Services Tax

Goods & Service tax (GST) has been introduced w.e.f 01.07.2017 and is applicable

on all supplies of goods and services. The exchange will levy GST at the rate

applicable on the supplies, as notified by the respective authorities. Under GST,

credit claim is on the concept of online matching of transactions, which is linked

with the GST Identification Number (GSTIN) and other invoice details. Therefore,

all listed entities, Trading Members and other Customers are requested to

intimate their GSTIN as allotted to them by the respective authorities in order to

claim input tax credit. The exchange shall not entertain any request for any

updation / change in the GSTIN details of the entity, once the invoice is issued. In

case GSTIN provided at the time of raising invoice is incorrect, the transaction will

be classified as B2C and the listed entity will not be eligible to claim credit.

For further clarifications on the subject matter you may kindly contact the

following officials:

Type of Query Contact Person Department Direct Line

Billing andOutstanding Relatedqueries

Ms. Farzana Mehta Unified BusinessCommercials

2272 8527

Ms. JyotsnaSukumaran

Unified BusinessCommercials

2272 5085

Taxation RelatedQueries

Mr. HariharaSubramanian

Finance &Accounts

2272 8522

Ms. Mita KothariFinance &Accounts

2272 8088

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Documents

Master Circular Finance March 2018 Limited Finance and Accounts Department 2 Master Circular March 2018 Finance and Accounts Department CONTENTS I. Direct Tax Matters3 1. Non deduction