Provision for collection and payment of securities transaction tax in case of insurance company introduced vide Securities Transaction Tax (1st Amendment), Rules, 2022

On January 18, 2022, the Central Government notifies Securities Transaction Tax (1st Amendment), Rules, 2022 to amend the Securities Transaction Tax Rules, 2004.

 

Key Amendments:

  • In the Securities Transaction Tax Rules, 2004, the following rule shall be inserted:

“ 5A. Person responsible for collection and payment of securities transaction tax in case of Insurance Company. In the case of an insurance company, the person responsible for collection and payment of securities transaction tax in accordance with subsections (2), (3) and (4) of section 100 of the Act, shall be the managing director or a wholetime director, as defined in clauses (54) and (94) of section 2 of the Companies Act, 2013 (18 of 2013), duly authorised by the Board of Directors of such company in this behalf.”.

  • In the principal rules, in rule 8 dealing with ‘Return by whom to be signed‘, the following clause shall be inserted:


(c) in the case of an insurance company by the managing director or a whole-time director as defined in clauses (54) and (94) of section 2 of the Companies Act, 2013 (18 of 2013) a duly authorised by the Board of Directors of such company in this behalf.”.

  • In the principal rules, in the APPENDIX Form No. 2A dealing with Return of Taxable Securities Transactions for Insurance Company shall be inserted.



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