Commodities Transaction Tax

Commodities Transaction Tax
COMMODITIES TRANSACTION TAX
Commodities Transaction Tax (CTT) has been levied on taxable commodities

transactions entered into with a recognized association.
“Taxable commodities transaction” means a transaction of purchase or sale in a
recognized association of—
a. option in goods; or
b. option in commodity derivative; or
c. any other commodity derivative.
Tax rates:
Taxable commodities transaction Rate Rate applicable on Payable

by
Sale of an option in goods or an 0.017 % Option premium Seller
option in commodity derivative
Sale of an option in goods or an 0.125 % Settlement price Purchaser
option in commodity derivative,
where option is exercised
Sale of any other commodity 0.017 % Selling price Seller
derivative
Collection and recovery: Every recognized association (hereinafter referred to as an

assessee) shall collect the commodities transaction tax from the seller or the
purchaser, as the case may be, who enters into a taxable commodities transaction in
that recognized association.
The commodities transaction tax collected during any calendar month shall be paid by
every assessee to the credit of the Central Government by the seventh day of the
month immediately following the said calendar month.
Furnishing of return: Every assessee will submit a return of all taxable commodities
transaction entered into during the financial year in that recognized association within
a specified time after the end of the financial year. Where, however, any assessee fails
to furnish the return within the prescribed time-limit, the Assessing Officer may issue
a notice to such an assessee, requiring him to furnish the return within such time as
may be prescribed. Belated return can be submitted at any time before the completion
of assessment. A return may be revised for correcting any omission or wrong
statement at any time before the assessment is made.
Assessment: For the purposes of assessment, the Assessing Officer may serve on any
assessee, a notice requiring him to produce on a specified date such accounts or
documents or other evidence as the Assessing Officer may require. The Assessing
Officer, after considering such accounts, documents or other evidence, if any, as he
has obtained and after taking into account any other relevant material which he has
gathered, shall by order in writing, assess the value of taxable commodities
transactions during the relevant financial year and determine the commodities
transactions tax payable or the refund due on the basis of such assessment. No
assessment should be made after the expiry of two years from the end of the relevant
financial year.
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Commodities Transaction Tax
Rectification of mistake: With a view to rectifying any mistake apparent from the
record, the Assessing Officer may amend any order passed by him within one year
from the end of the financial year in which the order sought to be amended was
passed. The Assessing Officer may make an amendment, either suo motu or any
mistake brought to his notice by the assessee.
Interest: For non-payment or short payment or late payment, a simple interest at the
rate of one per cent per month or part of the month shall be charged.
Penalty: Penalty can be imposed only after giving a reasonable opportunity of being
heard. However, no penalty can be imposed if the assessee proves to the satisfaction
of the Assessing Officer that there was reasonable cause of default. Penalty
provisions are as follows—
Nature of default Penalty (in addition to paying tax and interest

Failure to collect whole or any 100% of the amount of commodities transaction
part of the commodities tax which is not collected by the assessee
transaction tax by assessee
Failure to pay tax to the Credit Rs.1,000/- for every day during which the failure
of the Central Government continues (subject to the maximum of 100% of
commodities transaction tax)
Failure to furnish return Rs.100/- every day during which the failure
continues
Failure to comply with notice Rs.10,000/- for every day during which the
failure continues
Application of certain provisions of the Income-tax Act: The provisions of

Sections 120, 131, 133A, 156, 178, 220 to 227, 229, 232, 260A, 261, 262, 265 to 269,
278B, 288 to 293 of the Income-tax Act, 1961 shall apply, so far as may be, in relation
to commodities transaction tax.
Appeal: The provisions are as given below—
Nature To whom it Against which Who Time- Provisions of

of action should be order it can be can limit Income-tax
filed preferred prefer which apply
1st appeal CIT (Appeals) Order of AO Taxpayer 30 days 249 to 251
2nd Tribunal Order of the Taxpayer 60 days 253 to 255
appeal CIT (Appeals) or CIT
Punishment for false statement: If a person makes a false statement in any

verification, or delivers an account or statement, which is false, and which he either
knows or believes to be false, or does not believe to be true, he shall be punishable
with imprisonment for a term which may extent to three years and with fine.
Notwithstanding contained in the Code of Criminal Procedure, 1973, this offence
shall be deemed to be non-cognizable within the meaning of that Code.
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Commodities Transaction Tax

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Commodities Transaction Tax

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Commodities Transaction Tax

COMMODITIES TRANSACTION TAX

Commodities Transaction Tax (CTT) has been levied on taxable commodities

Taxable commodities transaction Rate Rate applicable on Payable

Collection and recovery: Every recognized association (hereinafter referred to as an

Nature of default Penalty (in addition to paying tax and interest

Application of certain provisions of the Income-tax Act: The provisions of

Appeal: The provisions are as given below—

Nature To whom it Against which Who Time- Provisions of

Punishment for false statement: If a person makes a false statement in any

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