NSE asks brokers to remit excess STT immediately to govt

Top bourse NSE today asked stock brokers to furnish details of excess securities transaction tax (STT) collected by them during fiscal 2013-14 and prior years as well as remit the amount with interest to the government immediately.

The move follows a notice issued by joint commissioner of Income Tax to draw attention towards excess STT collected by some brokers and sub-brokers, which is not being remitted to the government account.

"As per the instructions of the income tax department, this circular is hereby issued to members, requesting to furnish details of excess STT collected and retained with them for FY 2013-14 and preceding years as on March 31, 2014 to us and remit the excess STT with interest immediately," the National Stock Exchange (NSE) said in a circular.

In its communication to NSE, the income tax office has said stock brokers are required to furnish details on excess STT within 15 days of the exchange issuing a circular on the issue.

The brokers would also have to remit such excess STT collected along with 1 per cent interest for every month of delay to NSE following which the exchange would have to deposit the same to the government account immediately.

BSE has issued similar instructions its trading members earlier last month.