In response to a press launch put out by the Authorities right this moment, sure modifications in stamp obligation on monetary securities will go into impact from tomorrow, 1st July. The modifications had been initially slated to be applied from January however had been deferred to April after which July.
In response to specialists, they broadly fall into the next classes:
Uniform stamp obligation throughout the nation
Earlier completely different charges of stamp obligation had been specified by completely different states. “Since some states levied very low charges on speculative trades and there was a tax arbitrage available by basing your workplace in such states. This arbitrage will now go as a consequence of a uniform fee throughout the nation,” mentioned Deepak Jasani, Head, Retail analysis at HDFC Securities.
“Folks in states with excessive stamp obligation charges will profit from the uniform stamp obligation. Then again, proprietary or excessive frequency merchants who opportunistically situated themselves in low stamp obligation states can pay extra,” mentioned Nithin Kamath, CEO, Zerodha.
Stamp Responsibility on Off Market ransactions
In response to specialists, there was beforehand no stamp obligation on off market transactions in demat mode. Primarily this concerned the acquisition and sale of unlisted shares but additionally other forms of off market transactions like presents of economic securities.
“The round goals to standardize the gathering of stamp obligation and plug sure loopholes. Switch of shares of unlisted entities in bodily kind invited a stamp obligation of 0.25% however this might be circumvented by transferring the shares in a demat kind. However now that’s not the case,” mentioned Gautam Nayak, Companion, CNK and Associates LLP, a Mumbai based mostly Chartered Accountancy Agency.
Stamp obligation on purchaser, not purchaser and vendor
“Within the extant state of affairs, stamp obligation was payable by each vendor and purchaser whereas within the new system it’s levied solely on one facet,” the press launch mentioned.
Specialists have identified that the brand new guidelines take away the double imposition of stamp obligation on purchaser and vendor.
“Stamp obligation will solely be imposed as soon as and that too on the customer. Earlier it was on each the customer and the vendor,” mentioned Dhruv Rawani, a Mumbai based mostly Chartered Accountant.
Assortment by inventory exchanges, clearing firms and depositories
Earlier brokers needed to register with completely different states and gather and pay stamp obligation to them, mentioned Jasani. Now the exchanges will do the fee to states on behalf of brokers, lowering the burden on brokers.
“Now states should notify the brand new charges, course of, and assortment company. Except the states would not notify it, there will be ambiguity on the complete course of as stamp obligation is a state topic on difficulty of shares,” mentioned Amrish Shah, Companion, Deloitte India.
Readability on which state will gather the stamp obligation
“The notification clarifies on varied facets of the amendments made to the Indian Stamp Act 1899. There was at all times this query of whether or not the stamp obligation can be paid to the state the place the shopper is situated or the place the dealer is located. As a matter of observe, brokers used to pay stamp obligation to states the place the contract word was issued,” mentioned Sunil Gidwani, associate, Nangia Andersen Consulting Non-public Restricted.
The notification clarifies that stamp obligation will likely be payable to the state through which the shopper and particularly the customer in a transaction is situated.