Commodities transaction tax expanded to include options on commodity derivatives, specifying distinct rates and liable parties. Amendments add options on commodity derivatives to the taxable scope and substitute sections to set a three part rate table with specified payers: seller for sales of derivatives and options, purchaser when an option is exercised. The accompanying value provision fixes taxable value as the traded price for derivatives, the option premium for option sales, and the settlement price when options are exercised. A consequential insertion extends application of certain income tax provisions to commodities transaction tax. The changes take effect from the first day of April, 2018.
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Provisions expressly mentioned in the judgment/order text.
Commodities transaction tax expanded to include options on commodity derivatives, specifying distinct rates and liable parties.
Amendments add options on commodity derivatives to the taxable scope and substitute sections to set a three part rate table with specified payers: seller for sales of derivatives and options, purchaser when an option is exercised. The accompanying value provision fixes taxable value as the traded price for derivatives, the option premium for option sales, and the settlement price when options are exercised. A consequential insertion extends application of certain income tax provisions to commodities transaction tax. The changes take effect from the first day of April, 2018.
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