RBI/2004/281
DGBA.GAD.No.H-1793-1826/42.01.001/2004-05
November 20, 2004
The Chief Executive Officer
All Agency Banks
(As per list)
Dear Sir,
New Major Head for Accounting ‘Securities Transaction Tax’
We have been informed by the Office of the Principal Chief Controller of Accounts,
Central Board of Direct Taxes, New Delhi that as per chapter VII of the Finance
Act 2004-05, every recognised Stock Exchange shall collect the Securities Transaction
Tax from every person, being a purchaser or a seller, who enters into a taxable
security transaction in that Stock Exchange at the prescribed rates. The tax
so collected shall be paid by every recognised Stock Exchange to the credit
of Central Government by seventh day of the month immediately following the
said calendar month. This levy came into force with effect from October 1, 2004.
2. In order to facilitate the accounting and recording of ‘Securities
Transaction Tax’, the following codes are allotted to the Major Head and Minor
Heads of Accounts:
- Major Head - 0025 – Securities Transaction Tax
- Minor Heads – 101 – Collection under Securities Transaction Tax*
102 – Penalty
103 – Interest
* Minor Head will have the sub-heads (i) Tax Collection
and (ii) Deduct- Refunds.
3. We shall be glad if you will please issue suitable instructions
to all your authorised branches immediately, so as to enable them to account
for the collection under the appropriate Head of Account.
Yours faithfully,
Sd/-
(M.T.Varghese)
General Manager
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