The finance ministry has noted that the while some of the exchanges like NSE and BSE have taken advantage of the relaxation and demutualised, many others have not done so. To put pressure on the ones that have not yet done so, government has decided to withdraw the stamp duty relaxation available to stock exchanges on demutualisation.
NSE and BSE have taken advantage of the relaxation and demutualised, many others have not done so. The ministry feels putting a sunset clause to Section 8B will put pressure on others to demutualise. The States will also be able to revise periodically the market value guidelines of lands, buildings and various kinds of interests in immovable property for determining the duty chargeable at the time of registration once the bill is passed by Parliament and notified.
The bill has also proposed a new system of levy and collation of stamp duty on transactions relating to securities. Under the new law, states will have the power to increase stamp duty on mining leases if the royalty payments exceed the levels assumed at the time of the lease. Leases are usually for long duration and sometimes extend to about 100 years. States had expressed concerns over losing revenue and had sought additional powers to reassess duty. The new rule will help states get higher revenues from leasing out of mines, a big source of revenue of resource increasingly seen as an important revenue resource for states.
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