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Miscellaneous

Clause 69 seeks to amend,-

(a) section 9 of the Indian Stamp Act, 1899 with a view to delegate the powers of composition or consolidation of stamp duties  to the State Government even in respect of instruments referred to in the Union list of the Seventh Schedule to the Constitution;

(b) section 35 of the said Act with a view to specify for validation of all sorts of instruments on payment of due stamp duty alongwith penalty.

Clause 70 seeks to repeal the Promisory Notes (Stamp) Act, 1926, as the same has lost its utility.

Clause 71 seeks to amend the Central Sales Tax Act, 1956, with a view to include the liquefied petroleum gas for domestic use in the list of ‘declared goods’ so as to keep the tax rates on the same at reasonable level.

Clause 72 of the Bill seeks to amend the First Schedule to the Additional Duties of Excise (Goods of Special Importance) Act, 1957, to harmonise the same with the First Schedule to the Customs Tariff Act.

Clause 73 seeks to amend the Schedule to the Oil Industry (Development) Act, 1974, so as to increase the cess levied on crude oil.

Clause 74 seeks to amend the Schedule to the Additional Duties of Excise (Textiles and Textiles Articles) Act, 1978, to harmonise  the same with the First Schedule to the Customs Tariff Act.

Clause 75 seeks to amend the Seventh Schedule to the Finance Act, 2001, to harmonise the same with the First Schedule to the Customs Tariff Act.

Clause 76 of the Bill seeks to amend Chapter VII of the Finance (No.2) Act, 2004 relating to Securities Transaction Tax.

Sub-clause (a) seeks to amend section 97 of the said Act relating to definitions in respect of Securities Transaction Tax.

Under the existing provisions contained in section 98 of the said Act, sale or purchase of units of an equity oriented fund is liable to securities transaction tax at the rates specified under that section. Clause (5) of section 97 of the aforesaid Act, inter alia, defines the equity-oriented fund to mean a fund where the investible funds are invested by way of equity shares in domestic companies to the extent of more than fifty per cent. of the total proceeds of such fund.

It is proposed to amend the said clause so as to increase the investible funds from fifty per cent. to sixty-five per cent. of the total proceeds of such fund.

This amendment will take effect from 1st June, 2006.

Sub-clause (b)  seeks to amend section 98 of the said Act relating to charge of securities transaction tax.

It is proposed to amend the table below the said section which specifies the rates at which the securities transaction tax shall be charged.

It is proposed to enhance the rates of securities transaction tax from 0.1 per cent. to 0.125 per cent. in respect of the taxable securities transactions of the equity shares or units of equity oriented fund of the nature referred to in column (2) of the said Table against serial numbers 1 and 2 thereof.

It is further proposed to enhance the rate of securities transaction tax from 0.02 per cent. to 0.025 per cent. in respect of the taxable securities transactions of the equity shares or units of equity oriented fund of the nature referred to in column (2) against serial number 3.

It is also proposed to enhance the rate of securities transaction tax from 0.0133 per cent. to 0.017 per cent. in respect of the taxable securities transactions of derivatives of the nature referred to in column (2) against serial number 4.

It is also proposed to enhance the rate of securities transaction tax from 0.02 per cent. to 0.25 per cent. in respect of the taxable securities transactions of the units of equity oriented fund of the nature referred to in column (2) against serial number 5.

This amendment will take effect from 1st June, 2006.

 

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