Charges other than Brokerage for Stock Exchange Transactions

STT, Transaction Charges, Stamp Duty, SEBI Turnover Charges

Are you a day trader or active trader? One of the most pertinent question you should ask yourself is – What is your trading cost? Simple question, but not so simple answer. Did you just say – “30 paisa for Delivery and 3 paisa for F&O”. Wait, have you considered all the charges you are paying for executing trades on stock exchange. Quite often you recall and consider only your brokerage cost. But there are so many other charges which are levied on Stock exchange transactions apart from brokerage.

Check out the contract note and examine. You will see the following charges in addition to Brokerage charges – Securities Transaction Tax (STT), Stamp Duty and Other Charges. In most of the cases the break up of “Other Charges” is not provided, but note it consists of Transaction Charges and SEBI Turnover Charges. Then there is also Service Tax which is levied on all the charges except STT.

More often than not, when you are taking close intra-day trading calls, where the margins are wafer thin, you should have complete grasp of what your costs are going to be for a particular trade. These additional cost can become the difference between a winning trade and losing trade. Please see below detailed information on statutory charges on stock exchange transactions, other than Brokerage charges.

Securities Transaction Tax (STT)

Equity Delivery Transactions
Purchase: 0.10% of Turnover i.e. (Number of Shares * Price)
Sell: 0.10% of Turnover i.e. (Number of Shares * Price)

Equity Intra-day Transactions
Purchase: NIL
Sell: 0.025% of Turnover i.e. (Number of Shares * Price)

Future Transactions
Purchase: NIL
Sell: 0.010% of Turnover i.e. (Number of Lots * Lot Size * Price)

Option Transactions
Purchase: NIL at the time of purchase of option. However the purchaser has to pay 0.125% of the Settlement Price i.e. (Number of Lots * Lot Size * Strike Price), in case of option exercise
Sell: 0.017% of Premium

For more details on STT, please see All about Securities Transaction Tax (STT).

Transaction Charges

Equity Delivery Transactions
Purchase: 0.0031% of turnover in NSE and 0.0035% of Turnover in BSE
Sell: 0.0031% of turnover in NSE and 0.0035% of Turnover in BSE

Equity Intra-day Transactions
Purchase: 0.0031% of turnover in NSE and 0.0035% of Turnover in BSE
Sell: 0.0031% of turnover in NSE and 0.0035% of Turnover in BSE

Future Transactions
Purchase: 0.00185% of Turnover i.e. (Number of Lots * Lot Size * Price)
Sell: 0.00185% of Turnover i.e. (Number of Lots * Lot Size * Price)

Option Transactions
Purchase: 0.05% of Premium
Sell: 0.05% of Premium

SEBI Turnover Charges

Equity Delivery Transactions
Purchase: 0.0001% of Turnover
Sell: 0.0001% of Turnover

Equity Intra-day Transactions
Purchase: 0.0001% of Turnover
Sell: 0.0001% of Turnover

Future Transactions
Purchase: 0.0001% of Turnover i.e. (Number of Lots * Lot Size * Price)
Sell: 0.0001% of Turnover i.e. (Number of Lots * Lot Size * Price)

Option Transactions
Purchase: 0.0001% of Premium
Sell: 0.0001% of Notional Value in case of exercise or assignment

Stamp Duty

Equity Delivery Transactions
Purchase: 0.01% of Turnover. Turnover usually taken in multiple of Rs 5000
Sell: 0.01% of Turnover. Turnover usually taken in multiple of Rs 5000

Equity Intra-day Transactions
Purchase: 0.002% of Turnover. Turnover usually taken in multiple of Rs 5000
Sell: 0.002% of Turnover. Turnover usually taken in multiple of Rs 5000

Future Transactions
Purchase: 0.002% of Turnover. Turnover usually taken in multiple of Rs 5000
Sell: 0.002% of Turnover. Turnover usually taken in multiple of Rs 5000

Option Transactions
Purchase: 0.002% of Premium
Sell: 0.002% of Notional Value in case of exercise or assignment

Service Tax

Service Tax, Surcharge and Education Cess are applicable on Brokerage, Transaction Charges, SEBI Turnover Charges and Stamp Duty. Note Service Tax, Surcharge and Education Cess are not applicable on Securities Transaction Tax (STT).

Quick summary of Charges other than Brokerage, for Stock exchange transactions
Charges
Equity Delivery
Equity Intra-day
Futures
Options
Securities Transactions Tax
0.10% of Turnover
0.025% of Turnover on SELL transactions
0.010% of Turnover on SELL transactions
0.017% of Option Premium on SELL transactions and 0.125% of Settlement Value where Option is exercised
Transaction Charges
0.0031% of Turnover in NSE and 0.0035% of Turnover in BSE
0.0031% of Turnover in NSE and 0.0035% of Turnover in BSE
0.00185% of Turnover
0.05% of Premium
SEBI Turnover Charges
0.0001% of Turnover
0.0001% of Turnover
0.0001% of Turnover and closeout
0.0001% of Premium and Notional valuefor Exercise / Assignment
Stamp Duty
0.01% of Turnover
0.002%of Turnover
0.002% of Turnover and closeout
0.002% of Premium and Notional value for Exercise / Assignment

Detailed summary of Other Charges with Service Tax

Securities Transaction Tax (STT)
Product
Transaction
Rate
Service Tax
Effective Rate
Charged on
Equity Delivery
Purchase
0.100%
0.100%
Turnover
Sell
0.100%
0.100%
Turnover
Equity Intra-day
Purchase
Sell
0.025%
0.025%
Turnover
Future
Purchase
Sell
0.017%
0.010%
Turnover
Option
Purchase
0.125%
0.125%
Settlement price, on exercise
Sell
0.017%
0.017%
Premium
Transaction Charges
Product
Transaction
Rate
Service Tax
Effective Rate
Charged on
Equity Delivery
Purchase
0.0031%
12.36%
0.00348%
Turnover
Sell
0.0031%
12.36%
0.00348%
Turnover
Equity Intra-day
Purchase
0.0031%
12.36%
0.00348%
Turnover
Sell
0.0031%
12.36%
0.00348%
Turnover
Future
Purchase
0.00185%
12.36%
0.00208%
Turnover
Sell
0.00185%
12.36%
0.00208%
Turnover
Option
Purchase
0.05%
12.36%
0.05618%
Premium
Sell
0.05%
12.36%
0.05618%
Premium
SEBI Turnover Charges
Product
Transaction
Rate
Service Tax
Effective Rate
Charged on
Equity Delivery
Purchase
0.0001%
12.36%
0.00011%
Turnover
Sell
0.0001%
12.36%
0.00011%
Turnover
Equity Intra-day
Purchase
0.0001%
12.36%
0.00011%
Turnover
Sell
0.0001%
12.36%
0.00011%
Turnover
Future
Purchase
0.0001%
12.36%
0.00011%
Turnover
Sell
0.0001%
12.36%
0.00011%
Turnover
Option
Purchase
0.0001%
12.36%
0.00011%
Premium and Notional value for
Exercise / Assignment
Sell
0.0001%
12.36%
0.00011%
Premium and Notional value for
Exercise / Assignment
Stamp duty
Product
Transaction
Rate
Service Tax
Effective Rate
Charged on
Equity Delivery
Purchase
0.0100%
12.36%
0.0112%
Turnover, in 5000 multiple
Sell
0.0100%
12.36%
0.0112%
Turnover, in 5000 multiple
Equity Intra-day
Purchase
0.0020%
12.36%
0.0022%
Turnover, in 5000 multiple
Sell
0.0020%
12.36%
0.0022%
Turnover, in 5000 multiple
Future
Purchase
0.0020%
12.36%
0.0022%
Turnover, in 5000 multiple
Sell
0.0020%
12.36%
0.0022%
Turnover, in 5000 multiple
Option
Purchase
0.0020%
12.36%
0.0022%
Turnover, in 5000 multiple
Sell
0.0020%
12.36%
0.0022%
Turnover, in 5000 multiple

5 Comments

Leave a Reply