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Wednesday, February 18, 2015
Confusion over CTT on new agri-commodities cleared
The confusion over commodities transaction tax (CTT) on 38 new agricultural commodities is clear now. The government has neither levied as such any CTT on the trading of any new agricultural commodities nor removed it from the any commodity already covered in the list under CTT. In fact, the Central Board of Direct Taxes (CBDT) has expanded its list of the commodities exempting CTT; a finance ministry official source cleared the confusion. He added, the commodities included in this list will remain out of the ambit of CTT or CTT will not be levied on these commodities.
Previously, the news appeared in the media that the commodities transaction tax (CTT) would be levied on 38 new items of agricultural commodities as the Finance Ministry has expanded the list of agricultural commodities coming under CTT by adding 38 commodities to the existing number of 23. This created confusion in the market.
After including several agricultural commodities in the Non-CTT list, the government has opened a new window for new contracts in the agricultural commodities which exchanges now can initiate.
Commodities included in Non-CTT list
The new commodities included in the list are rice, bajra, ginger, sesamum, small millets, tur, tur dal, urad, urad dal, onion, groundnut, moong dal, methi, ragi , betelnuts, cinnamon, nutmeg, jowar, linseed, gram daland sunflower seed. Presently, some of the new items added to the list are not traded on commodity exchanges.