Remit excess securities transaction tax to govt in 15 days: BSE to brokers

Additional commissioner of income tax has stated that instances had come to his notice where excess STT was collected and retained by brokers and sub-brokers and was not remitted to govt account

Leading bourse BSE has asked stock brokers to furnish details of excess securities transaction tax (STT) collected by them during the financial year 2015-16 and for prior years, as well as to remit the amount to the government, within the next 15 days.

The move follows a circular issued by the additional commissioner of income tax drawing attention towards excess STT collected by some brokers and sub-brokers, which is not being remitted to the government's account.

"As per the IT circular, trading members who have collected excess STT and retained with them for financial year 2015-16 and preceding years as on March 31, 2016, are required to remit such excess STT directly to the government account," BSE said in a circular dated November 23.

It also said that "details regarding the same (excess STT) should be intimated to the office of the additional commissioner of income tax within 15 days from the date of this (BSE) notice".

The additional commissioner of income tax in his circular has stated that instances had come to his notice "that at times, excess STT is collected and retained by some of the brokers/sub-brokers and the same is not remitted to the government account".