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What is STT? Find STT of the following? Mr. A. sells a futures contract of M/s. XYZ Ltd. (Lot Size: 1000) expiring on 29-Sep-2005 for Rs. 300. The spot price of the share is Rs. 290.

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Securities Transaction Tax (STT) is levied on all transactions of sale and/or purchase of equity shares and units of equity oriented fund and sale of derivatives entered into in a recognized stock exchange.

The securities transaction tax thereon would be calculated as follows: 

1. Total futures contract value = 1000 x 300 = Rs. 3,00,000 

2. Securities transaction tax payable thereon 0.017% = 3,00,000 x 0.017% = Rs. 51

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