Stamp Duty

(Circular no. 638 with downlod reference no. NSE/MEMB/10958 dated July 9, 2008)

Downlod reference no. NSE/MEMB/10958 (zip)

All Members are requested to note that M/S BOI Shareholding Ltd. (BOISL) have been authorized by Govt. of Maharashtra for collection of NSE turnover stamp duty from the month of July 2008 (for the month of June 2008) vide Government Resolution No.Mudrank-2008/C.R.212/M-1 vide letter dated June 27, 2008.

BOI Shareholding Ltd. has further informed that all Members are required to submit Form A and Form B (attached in Circular No.638 given below) in the specified format prescribed by the General Stamp Office. The procedural guidelines for collection of turnover stamp duty are also attached in Circular No.638 given above.

Further, BOI Shareholding Ltd. has also informed that all Members need to comply with the following directions received from the Govt. of Maharashtra:
 

• The Govt. of Maharashtra vide its Order No. Mudrank 2006/CR/290/M-1 dated May 23, 2006 had in public interest waived the stamp duty on the instruments of record of transaction relating to sale and purchase of securities by Trading Members and investors who are residing outside the State of Maharashtra. BOISL shall obtain appropriate returns of turnover from brokers residing in Maharashtra and outside Maharashtra state-wise for proper implementation of the above-mentioned order. BOISL shall furnish this information to General Stamp Office on a monthly basis. Returns of brokers who do not furnish in such manner shall not be accepted. BOISL is acting on behalf of Govt. as a stamp duty collection agency and therefore it needs to verify whether payable stamp duty is properly calculated in the returns and if no advice, appropriate corrections in assessment. In short, the procedure so far of accepting returns and stamp duty in such manner as submitted by Clearing Members is to be discontinued.

• BOISL would adopt proactive approach and ensure that there is no avoidance of stamp duty when returns are accepted. The BOISL shall install systems/program/procedures to monitor turnover residence-wise and category-wise.

Further along with Form A & B, all Members should submit Clearing List (delivery and non-delivery based transactions for cash and derivatives, separately), in hard copy together with the remitted stamp duty in two sets between 1st and 10th of every month on Counter No.3&4 of BOI Shareholding Ltd.