STT on physically-settled derivatives: HC defers hearing in Anmi-NSE matter

Amni is of the view that there is currently no provision in the Finance Act to tax derivative trades on physical delivery

The Bombay High Court on Thursday deferred hearing in a matter between the brokers' lobby, Association of National Exchanges Members of India (Anmi), and the National Stock Exchange (NSE) over the applicability of securities transaction tax (STT) on physically-settled derivatives.

Since the counsel for the Central Board of Direct Taxation (CBDT) was not present, the court directed the Additional Solicitor General (ASG) to be present. The ASG assured return on August 28. The courts acknowledged the importance and urgency of clarification before the end of this month.

The legal tussle is over NSE’s decision to levy an STT of 0.1