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What is Stock Market Charges STT- GST-DP- BROKERAGE?

STOCK MARKET FEES – TAXES AND FEES on the purchase and sale of shares

Friends, There are fees on all transactions (buying or selling) in the stock market, which can be referred to as stock charges market. These fees consist of the stock broker commission and tax paid in addition to the price of the stock when buying and selling shares. can be said,

Today we will discuss these stock market fees.

TRADING TYPE IN STOCK MARKET

Understand that there are two distinct types of trading on the stock market.

1.Intraday Trading – Buy and sell on the same trading day

2.Positional Trading (Delivery-Based Trading) – Selling on the day following the purchase or at any time afterward.

TRADING SEGMENT OF STOCK MARKET

In addition, various segments have been developed for trading on the stock market.

1.Equity segment – segment in which only stocks are traded.

2.Derivative Segment – The segment in which futures and options on stocks are purchased and sold.

3.Commodities segment – A market for the purchase and sale of futures and options on commodities.

4.Currencies segment – Buying and selling of Currencies futures and Currencies options.

These are the four primary segments of the stock market in which people engage in trading, whether intraday trading or positional trading. The fees associated with these segments vary.

Check with your stockbroker about the fees associated with the segment in which you intend to trade, so that you are aware of all fees associated with your trades.

STOCK MARKET FEES

Here, we will discuss those common stock market fees that are uniquely applicable to the equity segment.

What is the definition of STOCK BROKERAGE?

It is known as BROKERAGE or BROKERAGE FEE.

At the time of account opening, all stock brokers will inform you of the brokerage fees they will charge for trading in various stock market segments and trading types.

What exactly is STT?

STT stands for Securities Transaction Tax.

At the time of an SECURITIES TRANSACTION (BUY OR SELL) from any REGISTERED STOCK EXCHANGE in India, STT is levied.

STT is determined by the Central Government, and you can learn more about the percentage charged by clicking the link provided below – BANKBAZAR STT EXPLAINED LINK

STT is charged only when a security is sold INTRA DAY, at a current rate of 0.025 percent ON THE SELL SIDE.

In DELIVERY BASED trading, STT is charged on both the purchase and sale of a stock, which is currently 0.1% ON EACH SIDE.

What is STAMP DUTY?

STAMP DUTY is the state-imposed tax fee, levied at the rate determined by the state and based on the investor’s home address.

If we discuss Maharashtra, then the STAMP DUTY fees for the EQUITY segment are as follows:

Delivery Trading – 0.01% and Intraday Trading – 0.002%

Your broker can provide you with the STAMP DUTY rate in your state.

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What exactly are TRANSACTION FEES?

TRANSACTION FEES, also known as TURNOVER FEES, are imposed by the stock exchange in the form of Exchange transaction fees plus Clearing fees.

Currently, the following fees apply to the EQUITY SEGMENT:

NSE: 0.00325% and BSE: 1.50 on buy and sell trades, respectively.

What exactly are SEBI TURNOVER FEES?

As suggested by its name, SEBI TURNOVER CHARGES refers to the fees assessed by SEBI for trading on the stock exchange.

Which currently costs 15 per crore

What are GST FEES (formerly referred to as Service Tax)?

Previously known as Service Tax, the tax levied by the Central Government on Stock Market Services is now referred to as GST Charges following the implementation of GST in July 2017.

Remember that the current GST rate is 18%, which is not levied on the entire TURNOVER, but rather on the brokerage + transaction fees levied on the TURNOVER.

What exactly are DP (DEPOSITORY PARTICIPANT) FEES?

The National Securities Depository Ltd (NSDL) and the Central Depository Services India Ltd impose DP charges (CDSL),

You can obtain information about DP fees from the broker who manages your DEMAT ACCOUNT.

If you have any further questions regarding STOCK MARKET FEES, please leave them in the section below.

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