Collection and Payment of the securities transaction tax

Collection and Payment of the securities transaction tax in case of Insurance Company

CBDT vide. Notification No. 9/2022 [F. No. 370142/61/2021-TPL] / GSR 25(E) dated 18th January, 2022 notified the ​Securities Transaction Tax (1st Amendment) Rules, 2022

In this notification, the government has inserted a new Rule 5A under the Securities Transaction Tax Rules, 2004, which is presented below:

Rule 5A. Person responsible for collection and payment of securities transaction tax in case of Insurance Company.-

In the case of an insurance company, the person responsible for collection and payment of securities transaction tax in accordance with sub-sections (2), (3) and (4) of section 100 of the Act, shall be the managing director or a whole-time director, as defined in clauses (54) and (94) of section 2 of the Companies Act, 2013 (18 of 2013), duly authorised by the Board of Directors of such company in this behalf.”.

Rule 6: Payment of securities transaction tax.- 

• Every recognised stock exchange, or
• The trustee of every Mutual Fund or such other person managing the affairs of the mutual fund as may be duly authorised by the trustee in this behalf, or
• The managing director or a whole-time director, duly authorised by the Board of Directors of an insurance company,
  
  who is required to collect and pay securities transaction tax under section 100 of the Act, shall pay the amount of such tax to the credit of the Central Government by remitting it into any branch of
  the Reserve Bank of India or
  the State Bank of India or
  any authorised bank accompanied by a securities transaction tax challan.”.

Rule 7: Return of taxable securities transactions

In the case of an insurance company, the return of taxable securities transactions is to be furnished electronically in Form No. 2A either under digital signature or electronic verification code.

Important Note: The return of taxable securities transaction entered into during a financial year shall be furnished on or before the 30th June immediately following that financial year.

Go to the Notification for Form No. 2A

Securities Transaction Tax Rules, 2004

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