Finance Bill 2023:
The Finance Bill 2023 was approved with amendments.
- The Lok Sabha passed Finance Bill, 2023 including the setting up of the GST Appellate Tribunal (GSTAT)
Key Highlights of the bill:-
- The withholding tax rate on royalties and fees for technical services paid to non-residents has been raised from 10% to 20%This may increase the cost of import of technology.
- Options contracts will now attract 0.021% STT from 0.017% earlier and futures will attract a levy of 0.0125%, up from 0.01%
- The Finance Bill has paved the way for setting up GST Appellate Tribunals across the country, with a principal bench in New Delhi and several State benches.
- The Tribunal will be headed by a former Supreme Court judge or a retired Chief Justice of a High Court.
- The stock market has seen an increase in Securities Transaction Tax (STT) on futures and options contracts from April 1, 2023.
- It is to discourage excessive trade in F&O.
- It means the Bill ordinarily introduced each year to give effect to the financial proposals of the Government of India.
- It contains some provisions related to taxation and expenditure and additionally contains provisions related to any other matter