TMI BlogSecurities Transaction Tax (STT) – Draft Rules, 2004X X X X Extracts X X X X X X X X Extracts X X X X ..... , 2004, very shortly. Meanwhile, in order to facilitate the stock exchanges, their members and mutual funds to put in place the necessary systems and procedures for proper implementation, the draft rules on the captioned subject along with the proposed format of the necessary forms are enclosed. 3. Accordingly, the stock exchanges, their members and mutual funds are hereby advised to ensure that necessary software and procedures for the levy, collection and remittance of STT are put in place immediately in accordance with the enclosed draft Rules. Yours faithfully, V S SUNDARESAN SECURTIES TRANSACTION TAX (DRAFT) RULES 1. Short title and commencement - (1) These rules may be called the Securities Transaction Tax (d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uity share or unit by the person on that day shall be arrived at by totalling the trade values determined under sub-clause (i); (iii) the aggregate trade value arrived at under sub-clause (ii), shall be divided by the total quantity of the equity share or unit traded by the person on that day, to determine the volume weighted average price of that equity share or unit for that person for that day; (iv) such volume weighted average price (rounded off to the nearest paisa) shall be taken to be the value of the taxable securities transaction relating to the equity share or unit. Explanation.- For the removal of doubts, it is hereby clarified that the determination of the value of the taxable securities transaction under this clause i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e-for-trade settlement mode means a mode of settlement of transactions in a recognised stock exchange where each trade is compulsorily required to be settled by actual delivery; (iii) auction settlement mode means a mode of settlement, in a stock exchange, of transactions carried out in the auction session, being a trading session in which the stock exchange makes purchases of equity shares or units through an auction process initiated by it, so as to settle transactions where there has been a failure to deliver such equity shares or units which were required to be delivered. 4. Rounding off value of taxable securities transaction, securities transaction tax, etc. - The value of taxable securities transaction and the amount of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sub-section (1) of section 101 of the Act shall, - (a) in the case of a recognised stock exchange, be in Form No. 1 and be verified in the manner indicated therein; (b) in the case of a Mutual Fund, be in Form No. 2 and be verified in the manner indicated therein. (2) The details required to be furnished in the schedules to Form No. 1 and Form No. 2 referred to in sub-rule (1) shall be furnished on a computer media, in accordance with the following, - (a) the computer media conforms to the following specifications:- i) CD ROM of 650 MB capacity or higher capacity; or ii) 4mm 2GB/ 4GB (90M/ 120M) DAT Cartridge, or iii) Digital Video Disc; (b) if the data relating to the schedules is copied using data compression or b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of service of the notice, a return in the Form prescribed in rule 7 as applicable to him and verified in the manner indicated therein. 10. Notice of demand - Where any tax, interest or penalty is payable in consequence of any order passed under the provisions of Chapter VII of the Act, a notice of demand in Form No. 3 specifying the sum so payable shall be served upon the assessee. 11. Prescribed time for refund of tax the person from whom such amount was collected - Every assessee, in case any amount is refunded to it on assessment under sub-section (2) of section 102 of the Act, shall, within thirty days from the date of receipt of such amount, refund the same to the concerned person from whom it was collected. 12. F ..... X X X X Extracts X X X X X X X X Extracts X X X X
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