CTT not to be notified this fiscal: Fin Min Sources

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Finance Ministry sources said the commodity transaction tax, or CTT, rates are unlikely to be notified this fiscal, reports CNBC-TV18. Finance Minister P Chidambaram is aware of the view that current CTT rates may be on the higher side.

 

The Finance Minister had introduced CTT during the annual budget earlier this year, but the move met with stiff opposition from commodity brokers, exchanges, and also from the Forward Markets Commission - the commodities market regulator - as they felt the tax would slowdown the futures market.

 

CTT is levied on futures trading on the same lines as it is on stocking trading in the country. The major difference between the securities transaction tax, or STT, and CTT is that STT could be offset against income tax liability. On the other hand, CTT is allowable only as business liability and will be treated as reduction in business income.

 

The CTT was to have come into effect from April 1, 2008.

 

CNBC-TV18 Disclaimer: This information has not been provided to the stock exchanges, and is source-based.