Free Trading + Demat Account

Brokerage Charges Explained (Brokerage, Taxes, Fees) - India Stock Market

Posted on Thursday, November 20, 2014

Modified on Saturday, August 27, 2016

LOOKING FOR A SHARE BROKER?

We can help you find the right broker for your trading needs.

Name:Phone
EmailCity
State
Are you a day trader?

Brokers are middleman or agents who help us in buying and selling shares, derivatives (Futures and Options) and other financial instruments. Brokers charge a fee called brokerage for the service they offer.

But brokerage is not the only fee customers have to pay. The total amount paid to the stock/commodity brokers is made of multiple charges, fees and taxes. This includes:

Brokerage

The fee brokers charges for the service they offer. Each broker has its own brokerage model. While traditional brokers charge the brokerage in % of trade amount; the discount brokers offers flat monthly or per trade fee.

Transaction Charges

Transaction charge is a fee charged by broker. They are the largest part of brokerage paid. Transaction fee is addition of two charges.
Transaction charge = Exchange Turnover Charges + Clearing Charges

Visit Transaction charges are explained for more detail about transaction charges

Securities Transaction Tax (STT)

The tax payable on the value of securities transacted through a recognized stock exchange. This is charged only on the sell side for intraday and F&O trades. It is charged on both side's for delivery trades in equity. There are no STT on Bonds, Currency and Mutual funds.

SegmentSTT Tax Rates
Equity Delivery0.1% on both Buy and Sell
Equity Intraday0.025% on the Sell Side
Equity Future0.01% on Sell Side
Equity Options0.017% on Sell Side(on Premium)
Currency FuturesNo STT
Currency OptionsNo STT
Commodity0.01% on Sell Side (Non-Agri)

Commodity Transaction Tax (CTT)

Commodity Transaction Tax (CTT) is a tax levied on exchange-traded commodity derivatives in India. Agricultural commodities are exempted from CTT but there are taxes on non-farm commodities or non agro like gold, silver and non-ferrous metals such as copper and energy products like crude oil and natural gas.

Stamp Duty

Stamp Duty on securities transactions is the tax levied on documentation by the state governments in India. Stamp duty varies by state to state charged by in which state you live. i.e. In Bangalore it is charged at .01% or Rs. 50 per contract note whichever is lower.

Service Tax

Service Tax is a tax imposed by Government of India on services provided in India. Service tax on securities transactions is charged at 15% of the total cost of brokerage plus transaction charges.

SegmentService Tax Rates
Equity Delivery, Intraday, F&O15% on Brokerage + Transaction Charge
Currency F&O15% on Brokerage + Transaction Charge
Commodity15% on Brokerage + Transaction Charge

SEBI Turnover Fee or SEBI Charges

SEBI, Securities and Exchange Board of India he regulator for the securities market in India charges a fee for all sale and purchase transactions in securities other than debt securities.This is charged at Rs 20 per crore.

SegmentSEBI Turnover Fee Rates
Equity Delivery, Intraday, F&O0.0002% (Rs 20 per Crore)
Currency F&O0.0002% (Rs 20 per Crore)
Commodity0.0002% (Rs 20 per Crore)

The above fees or charges are provided in detail in form of Contract Note by the broker.

What is 'Contract Note' in stock market?

Contract note, a document sent by broker to the client at end of trading day to provide detail about the transaction with the broker.

This document include detail of buy & sell transactions for the day, brokerage charged, other fees or charges applied and total amount due to customer.

Broker provides an electronic copy of contract note (in pdf format) for free and charge additional amount to send a paper copy by mail. One contract note is send to customer every day; which include all the transactions for the day with the broker.

Here is a 'Contract Note Sample' which shows all these charges:

Contract Note Sample - India Share Market

Rate this article
12
3.4
Rating:Rated 3.4 stars

Vote Here ...

User Comment

No record Found

special_offers
By Popular Stock Brokers
ProStocks, The Flat Rate Discount Stock Broker
ProStocks
Flat Fee Broker

Rs 899 Unlimited Equity
Rs 499 Unlimited Curr
or Rs 15 per Trade

Lowest Transaction Charge
Lowest Call & Trade Fee
Lowest Stamp Duty

FREE Trading + Demat Acct

Flat Rs 20 Per Trade
Free Equity Delivery Trades

Rs 100 off on account opening* + 100% brokerage refund if in 60 days you have made net profits

Enquire Now
(* on online account opening)

Intraday @ 0.02%
Delivery @ 0.15%

Rs 0 account opening fee
(Rs 400 waived)

Request Demo

RKSV Discount Broker  RKSV

Ditch & Switch

Switch to RKSV and earn brokerage credit of Rs 2000

Get RKSV Trading Account

Beginner, seasoned investor, active trader or HNI. Get customised solutions.

Rs 0 account opening fee on Online Trading + Demat Acct
(Rs 1150 waived)

Request Call Back



More About Brokers

Special Offers Broker Reports

Message Board

Stock Message Board


Search Chittorgarh.com:

Translate Chittorgarh.com: