E-Paper
UPSE brokers? daylong strike on Monday
BROKERS AT the UP stock Exchange have decided to go on a day's strike on Monday to protest against the stamp tax levied on them by the government. They said that they would wind up operations at the UP bourse in case the government failed to address the issue.
BROKERS AT the UP stock Exchange have decided to go on a day's strike on Monday to protest against the stamp tax levied on them by the government.
They said that they would wind up operations at the UP bourse in case the government failed to address the issue.
The root of the conflict is a letter written by the Inspector-General (Stamps/Registration) to the Securities Exchange Board of India (Sebi), National Securities Depository, Central Depository Services, Mumbai, Bombay Stock exchange and National Stock Exchange.
The letters asks these bodies to ensure that all the brokers based in Uttar Pradesh and coming under their purview must pay stamp tax against transactions done under the broker note. It further says, the tax will also be applicable on the e-transactions, which too are defined under no-instrument category.
So, the brokers will be paying a tax of Rs 10 on a transaction of Rs 20,000. The brokers say they would be paying a tax of Rs 5,000 on a transaction of Rs 1 crore. They say the tax rate was almost five times more than what was being charged in Maharashtra.
A large numbers of brokers, in a meeting at the UPSE on Friday, clearly said if the tax was enforced in the current form, it would be totally unacceptable.
Brokers said they were ready to pay on the Maharashtra pattern or call it quits at the UPSE.
The UPSE administrator KD Gupta said that the brokers decided to remain on a day's strike on Monday and soon a delegation would meet the secretary (Registration) on this issue.
