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However, a lot of it changed with the introduction of theCommodity Transaction Tax (CTT)by the Government of India from July 2013.
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However, with CTT, transaction cost for a trader increased by about 5 times, causing the trader to rethink his/her options as the propose rate does not reflect volatility conditions of the commodity vis-à-vis equity derivative markets.
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1,80,000 crores to over Rs.
37,00,000 crores (from approximately 2650 kgs to 12,600 kgs); upon the introduction of CTT in July 2013, the trade value dropped to about Rs.
30,00,000 crores (volume dropped to about 10,600 kilograms).
how to tax saving investments for indians step by step ✌️【365vc.net】✌️Start with ₹500 and achieve up to 100% monthly returns. Simple, safe, and highly profitable.The negative effect was more startling in 2014 and 2015 with trade values dropping to approximately Rs.
12,50,000 crores and Rs.
11,70,000 crores respectively – a drop of about 67% from its peak in 2012[1].Though first introduced in the Union Budget 2008 – 09, CTT was subsequently withdrawn and this had a huge positive effect on the growth of the Indian commodity exchanges.
However, CTT was reintroduced in the current form in the 2013 – 2014 Union Budget – it came into effect from July 1, 2013 and is applicable to all non–agricultural futures trade; the rate being 0.01%. In this article, we attempt to analyze the objectives, results and impact of CTT on gold futures.We first look at the revenue generation aspect of CTT.
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