COMMODITIES TRANSACTION TAX TO BE EFFECTIVE FROM 1ST JULY, 2013

COMMODITIES TRANSACTION TAX

In exercise of the powers conferred by sub-section (2) of section 115 of the Finance Act,2013(17of 2013), the Central Government hereby vide NOTIFICATION NO. 45/201[F.NO.142/09/2013-TPL]/SO 1768(E), DATED 19-6-2013, appoints the 1st day of July, 2013 as the date on which Chapter VII of the said Act-COMMODITIES TRANSACTION TAX shall come into force.

Further COMMODITIES TRANSACTION TAX RULES, 2013 has been prescribed vide NOTIFICATION NO. 46/2013 [F.NO.142/09/2013-TPL]/SO 1769(E), DATED 19-6-2013

Commodity Transaction Tax (CTT) at 0.01 per cent will be levied on various non-agricultural commodities, including gold, sugar and edible oils, with effect from July 1.

Notifying the CTT today, the Finance Ministry said 23 agricultural commodities, including wheat, barley, chana, cotton and potato, would be exempted from the levy.

The tax would be levied on futures trading and not on spot trading in the commodities.

Besides gold, silver, crude oil and base metals, processed farm items like sugar, soya oil and guar gum will come under CTT, it said. Coriander, cardamom and guar seed is also out of the CTT.

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