Q. Which of the following commodities is/are taxed under “commodities transaction tax”?
1.Cotton
2.Rubber
3.Gold
Select the correct answer from below given codes:
Answer: A
Notes:
Explanation: Commodity transaction tax (CTT) is imposed on the purchase & sale of commodity contracts in Indian commodity exchanges in the same way that security transaction tax (STT) is set on the purchase & sale of securities in Indian secondary markets.
- Commodities derivative contracts were the first to be subject to the commodity transaction tax in July 2013. The CTT, or commodity transaction tax, is taxed at 0.01% of the trade price on non-agricultural commodity derivative contracts.
- All transactions involving the trade of commodities are subject to CTT. The tax is applicable to the buyer & the seller. The actual contract size determines the tax.
- Trading in agricultural commodities is not subject to the CTT. Natural gas, silver, Brent oil, crude oil, & gold are examples of commodities that are taxed.
Source: Ramesh Singh