CBDT notifies Person responsible for Collection and Payment of Securities Transaction Tax in case of Insurance Company [Read Notification]

The Central Board of Direct Taxes (CBDT) has notified a new provision related to the person responsible for the collection and payment of securities transaction tax in the case of the Insurance Company.

The Board notified the Securities Transaction Tax (1st Amendment), Rules, 2022 which seeks to amend Securities Transaction Tax Rules, 2004.

In the Securities Transaction Tax Rules, 2004, Rule 5A, reads as, in the case of an insurance company, the person responsible for collection and payment of securities transaction tax in accordance with sub-sections (2), (3), and (4) of section 100 of the Act, shall be the managing director or a whole-time director, as defined in clauses (54) and (94) of section 2 of the Companies Act, 2013, duly authorised by the Board of Directors of such company in this behalf, shall be inserted.

Payment of securities transaction tax.- Every recognised stock exchange, or the trustee of every Mutual Fund or such other person managing the affairs of the mutual fund as may be duly authorised by the trustee in this behalf, or the managing director or a whole-time director, as defined in clauses (54) and (94) of section 2 of the Companies Act, 2013 (18 of 2013), duly authorised by the Board of Directors of an insurance company, who is required to collect and pay securities transaction tax under section 100 of the Act, shall pay the amount of such tax to the credit of the Central Government by remitting it into any branch of the Reserve Bank of India or of the State Bank of India or of any authorised bank accompanied by a securities transaction tax challan.

In the case of an insurance company, the return referred to in sub-rule (1) shall be furnished by the managing director or a whole-time director, as defined in clauses (54) and (94) of section 2 of the Companies Act, 2013 (18 of 2013), duly authorised by the Board of Directors of such company in this behalf.

For the purposes of this sub-rule “electronic verification code” means a code generated for the purpose of electronic verification of the person furnishing the return of income as per the data structure and standards specified by Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems).

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