What is STT and CTT? Definition, Best Example & 3 Difference

When you buy or sell equities and commodities, there are taxes applicable mostly on selling and sometimes on buying as well. The Names of these taxes are STT and CTT. Do you know what is STT and CTT? If your answer is no, let’s discuss CTT and STT in detail.

What is STT ?

Full form of STT is Securities Transaction Tax. It is a tax charged on equities transactions including Mutual funds(not on commodities or currency trades). Trades on the NSE or BSE, and other approved stock exchanges are subject to STT.

It is a direct tax imposed by Government of India. It is basically vary upon below factors :

• The Section of securities (Equity, Futures & Option, Mutual Funds, etc)
• Purchase or sell transactions.
• Trade Type (Intraday / Equity Delivery)

What is CTT?

CTT stands for Commodity Transaction Tax in Commodity trading. It’s a tax charged when you purchase and sell commodity futures & options contracts, and it’s similar to STT. CTT Tax was introduced in July 2013 and applies only to non-agricultural commodities such as gold, silver, copper, and crude oil.

Difference between STT and CTT (STT vs CTT)

These are the major Difference between Securities Transaction Tax and Commodity Transaction Tax:

Conclusion

Mostly people don’t like taxes but these taxes are imposed to regulate things and growth of that particular industry or segment.

This is all from our side regarding What is STT and CTT? Although, if you have any doubts you can just comment below.

Originally published at https://profitmust.com on June 2, 2021.