According to the reports, the rate of the stamp duty will be uniform on a transfer of financial instruments including stocks and debentures, a reform due to which doing business in India will become easy.
Many states and central government indirect taxes were included by the Goods and Services Tax (GST) when it was launched in 2017. The Central and state governments have concluded that the changes are to be made to the century-old Stamp Duty Act, a top government official told.
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The officials said that the project is set and states have been discussed over the same and the change will be moved in the Winter session of Parliament.
As charged on documents, and few transactions such as buying and selling of land, the stamp duty has been excluded from GST.
To cut down transaction costs, states have to either reject stamp duty on financial transactions or justify it was asked by Markets regulator Securities and Exchange Board of India (SEBI).
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States opposed to giving up powers to impose stamp duty, due to which this compensation act has come very late.
In December 2005, to address the issue of indefinite stamp duty on debt instruments, a high- level committee was set up by the government. Fixed duties on corporate bonds and unsecured bonds were also suggested under it.
