NCDEX to penalise traders on APMC tax

National Commodity and Derivatives Exchange warned members and traders not producing receipt/certificate of payment of mandi (market) tax, or APMC tax, at the time of depositing goods in exchange-accredited warehouses.

Traders giving physical delivery in agricultural commodities have to register themselves and pay tax to respective local markets under Agricultural Produce Market Committee (Regulation) Act.

As per the law, any trader or member who wishes to give delivery by selling a farm commodity on the exchange platform needs to submit the proof of payment of such tax at the time of delivery of goods to exchange-accredited warehouses. This proof is required to be handed over to the buyer-member for settlement of the transaction.

Regarding complaints of non-receipt of such receipts, NCDEX, in a warning to such traders said," Non-furnishing of (tax) documents to buyer is considered as violation of the regulations and would attract penalties that would be debited to the members' accounts and passed on to the counter-party."

"Above penalties levied by the exchange would not substitute the levy the mandi-tax authorities may impose upon such members for not complying with the provisions of respective states, Union territories where deliveries happen."