There are 6 different types of charges applicable while squaring off positions or holdings. Let us understand each one in detail.
Brokerage charges are usually in the form of a fixed percentage of the transaction size.
At Upstox, brokerage charges are currently ₹20/order for Intraday orders. For Delivery-based Equity orders, brokerage charges are not imposed.
Delivery-based orders are for Stocks that are bought with the intention to hold them for longer than a day, therefore, they're delivered to your Trading account. Intraday orders are for Stocks that are bought and sold on the same day and are not delivered to your Trading account.
This means, if you place an Intraday order of ₹10,000 you will be charged brokerage of ₹20 each on the ‘buy’ and ‘sell’ leg of the trade.
Securities Transaction Tax (STT)
You must pay the STT every time Stocks are bought and sold on the Exchange. It is levied on transactions involving three investment instruments – Stocks, Derivatives, and Equity Mutual Funds. Upstox shall automatically deduct the STT every time you invest/trade in mentioned instruments.
The STT rate varies from transaction to transaction. It is mentioned in the contract note.
For Delivery-based stock transactions, it is 0.1% of the transacted value. For example, if you buy or sell securities worth ₹ .1 lakh, you will be charged ₹ 100 as STT.
Goods and Services Tax (GST)
This is the tax charged on the brokerage fees for executing a trade. The GST in the Stock Market is charged at 18% of the brokerage fee. So, if any Stock bought is worth ₹ 1 lakh and brokerage charged is ₹20, the GST payable will be calculated as follows:
Brokerage fee = Rs.20
GST = Rs.20 x 18% = Rs.3.6
This is one of the most common types of costs involved in Stock Market investments and is levied on the value of shares transferred. Stamp duty in the Stock Market differs across states and is charged on the total amount of turnover. It’s charged on both buying and selling sides.
Transaction charges are levied by Stock Exchanges on both sides of trading and are the same for Intraday and Delivery trading. The transaction fee of NSE and BSE of the total turnover amount stands at 0.00325% and 0.00275% respectively.
SEBI turnover charges or Clearing Charges
Charged on both sides of a transaction, SEBI turnover charges are the same for Delivery, Futures & Options trading, and Equity Intraday trading. SEBI turnover charges are equal to 0.0002% of the total turnover.