Consider the following statements with respect to Securities Transaction tax STT 1 It is levied on p...........

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Consider the following statements with respect to Securities Transaction tax (STT):

1. It is levied on purchase and sale of securities that are listed on the Indian stock exchanges.

2. The rate of STT that is deducted is determined by the central government.

3. It is a single rate that prevails for all types of transactions and securities.

How many of the statements given above is/are correct?

Only One

Only Two

All Three

None

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Explanation:

It is levied on the purchase and sale of securities that are listed on the Indian stock exchanges: This statement is correct. The Securities Transaction Tax (STT) is indeed levied on the purchase and sale of securities that are listed on recognized stock exchanges in India.

The rate of STT that is deducted is determined by the central government: This statement is correct. The rates of STT are determined and specified by the central government in consultation with the Securities and Exchange Board of India (SEBI).

It is a single rate that prevails for all types of transactions and securities: This statement is incorrect. The STT rates can vary for different types of securities and transactions. Different rates may apply to equity shares, derivatives, and other securities.