215. Amendment of Act 17 of 2013.
In the Finance Act, 2013,––
(a) in section 116, in clause (7), after the words “sale of commodity derivatives”, the words “or option on commodity derivatives” shall be inserted with effect from the 1st day of April, 2018;
(b) for sections 117 and 118, the following sections shall be substituted with effect from the 1st day of April, 2018, namely:-
Charge of commodities transaction tax.
“117. On and from the 1st day of April, 2018, there shall be charged a commodities transaction tax in respect of taxable commodities transaction specified in column (2) of the Table below, at the rate specified in the corresponding entry in column (3) of the said Table, on the value of such transaction and such tax shall be payable by the purchaser or the seller, as the case may be, as specified in the corresponding entry in column (4) of the said Table:
TABLE
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Sl.No.
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Taxable commodities transaction
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Rate
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Payable by
|
|
(1)
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(2)
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(3)
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(4)
|
|
1.
|
Sale of a commodity derivative;
|
0.01 per cent.
|
seller
|
|
2.
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Sale of an option on commodity derivative;
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0.05 per cent.
|
seller
|
|
3.
|
Sale of an option on commodity derivative, where option is exercised.
|
0.0001 per cent.
|
purchaser
|
Value of taxable commodities transaction.
118. The value of taxable commodities transaction referred to in section 117,-
(a) in the case of a taxable commodities transaction relating to a commodity derivative, shall be the price at which the commodity derivative is traded;
(b) in the case of a taxable commodities transaction relating to an option on commodity derivative, shall be-
(i) the option premium, in respect of transaction at serial number 2 of the Table in section 117;
(ii) the settlement price, in respect of transaction at serial number 3 of the Table in section 117.”;
(c) in section 128, after the word “sections”, the figures “119,” shall be inserted with effect from the 1st day of April, 2018.
Notes on Clauses:
Clause 215 of the Bill seeks to amend sections 116, 117, 118 and 128 of the Finance Act, 2013 relating to commodities transaction tax.
Clause (7) of the section 116 defines “taxable commodity transaction”. It is proposed to amend the said clause so as to include “option on commodity derivatives”.
Section 117 of the said Act provides the rate at which a commodities transaction tax shall be chargeable in respect of every taxable commodities transaction, being sale of commodity derivative and that such tax shall be payable by the seller.
It is proposed to substitute the said section so as to provide the rate at which the commodities transaction tax shall be chargeable in respect of the taxable commodities transaction, which shall be payable by the seller or purchaser, as the case may be.
Section 118 of the said Act provides the value of taxable commodities transactions, which is chargeable under section 117 on sale of commodity derivative.
It is proposed to substitute the section 118 so as to provide that the value of taxable commodities transaction which is chargeable under section 117 on sale of commodities.
Section 128 of the said Act provides that the provisions of certain sections of the Income-tax Act, as specified therein, shall apply, so far as may be, in relation to commodities transaction tax, as they apply in relation to income-tax.
It is proposed to amend the said section so as to include reference of section 119 of the Income-tax Act also.
These amendments will take effect from 1st April, 2018.
