Commodity Transaction Tax (CTT) is a tax levied on the purchase and sale of non-agricultural commodity futures contracts traded on recognised commodity exchanges in India such as MCX. Introduced in the Finance Act 2013 and effective from July 1, 2013, CTT is modelled on the Securities Transaction Tax (STT) applicable to equity markets. The rate of CTT is 0.01% of the traded value for both buyers and sellers on commodity futures contracts. CTT is applicable on non-agri commodities like gold, silver, crude oil, copper, and other metals and energy products. Agricultural commodity futures are exempt from CTT to protect farmer hedging activity. CTT is collected by the commodity exchange and deposited with the Central Government. For commodity traders, CTT is a direct transaction cost that affects the economics of high-frequency trading and short-term speculative strategies in Indian commodity markets.
For android only
