The centre is likely to come out with a uniform and market-friendly stamp duty structure for transactions in the capital and commodities markets within two weeks, a senior finance ministry official said.
Department of Economic Affairs and Department of Revenue are in consultation to evolve a market friendly stamp duty structure, a senior ministry official said.
The new structure, he added, would help the states modify their stamp duty regulations for various instruments like equities, futures and other products.
“We could recommend stamp duty structure for various products in next two weeks,” he said.
Different stamp duty rates are imposed on transaction of securities, futures, delivery and other instruments in the share market and commodity exchanges.
Since the Stamp Duty is levied by the states, the centre can only persuade them to adopt a structure that would bring about some uniformity in rates across the country.
The Maharashtra government recently amended stamp duty regulations and came out with a uniform duty of 0.0005 per cent on all transactions in capital and commodities markets.
“Every state has its own rules. There is utter confusion. Market participants have a long pending demand of making it uniform,” CEO of Destimoney Securities Sudip Bandopadhyay said.
Commodity Participants Association of India (CPAI) has also urged state governments, including Forward Market Commission (FMC), to abolish stamp duty on transactions relating to all commodities trade from next fiscal 2012-13.
“Cost of trading in commodities is increasing day by day with varying stamp duties and therefore time has come that the FMC in consultation with state finance ministers should consider removal of this duty,” CPAI President of D K Aggarwal said.
One small suggestion relates to stamp duty on proxy forms issued by shareholders to attend general meetings. The present duty is 15 paise per form. 15 paise revenue stamps are not being printed anymore. Further, with the so-called green initiative, companies are now allowed to send annual reports etc. by e mail to shareholders, and so shareholders have to print out the proxy forms themselves. It would greatly facilitate shareholders if the stamp duty on proxies is abolished, so that they can send proxies either online to companies on their own initiative. The loss of revenue to the Govt. due to abolition of stamp duty on proxy forms will not exceed a few thousand rupees.