Some states like Maharashtra, Karnataka etc. charges stamp duty on trades executed by brokers on BSE or NSE. Maharashtra govt. have levied stamp duty on all trades executed on stock exchanges irrespective where the broker or investor is registered or residing. Basically it covers brokers not having registered office in Maharashtra. Few States also levy stamp duty on trades executed by brokers registered in their states. This way there is a situation of dual levy of stamp duty.
So far, it is known there is a negotiation in process between SEBI and government to rationalising the applicable stamp laws. But pending the outcome, what a stock broker should do inorder to comply with the stamp laws of different states.
If anyone have any information on this subject, please share on this forum.
Regards
M S
