FREQUENTLY ASKED QUESTIONS
32. Do I need to pay Sales Tax/ VAT on all trades? Is registration mandatory?
No.
If the trade is squared off no sales tax is applicable. The sales tax
is applicable only in case of trade resulting into delivery. Normally
it's the seller's responsibility to collect and pay the sales tax. The
sales tax is applicable at the place of delivery. Those who are willing
to opt for physical delivery need to have sales tax registration number.
33. Are any transaction duty charges imposed on commodity futures contracts
.as in case of stocks?
Although
FMC does not levy any transaction charges as of now, the respective
commodity exchanges levy transaction charges. Transaction charges are
in the range of Rs 4 to Rs 6 per lakh/per contract, which may differ
for each commodity/exchange.
34. What is the date of expiry?
At
NCDEX the contracts expire on 20th day of each month. If 20th happens
to be a holiday the expiry day will be the previous working day.
35. What are the commodities on which futures trading take place?
At
present futures are available on the following commodities.
| Bullion |
Gold
and Silver |
| Oil
& Oilseeds |
* Castor seeds, Soy seeds, Castor Oil, Refined Soy Oil, Soymeal, RBD
Palmolein, Crude Palm Oil, Ground Nut Oil, Mustard Seed, Mustard
Seed Oil, Cotteonseed Oil cake, Cotteonseed, Mentha Oil |
| Spices |
Pepper,
Red Chilli, Jeera, Turmeric |
| Metals |
Steel
Long, Steel Flat, Copper, Nickel, Tin, Steel ingots, Zinc, Aluminium |
| Fibre |
Kapas,
Long Staple Cotton, Medium Staple Cotton |
| Pulses |
Chana,
Urad, Yellow Peas, Tur, Masur |
| Cereals |
Rice,
Basmati Rice, Wheat, Maize, Sarbati Rice |
| Energy |
Crude
Oil, Furnace Oil |
| Others |
Rubber,
Guar Seed, Guargum, Cashew, Cashew kernel, Sugar, Gur, Coffee, Silk |
* Since the exchanges continue to add new products, the above list
may be outdated.
36. How much are the margins on these Commodity future contracts?
Generally
commodity futures require an initial margin between 5010% of the contract
value. The exchanges levy higher additional margin in case of excess
volatility. The margin amount varies between exchanges and commodities.
Therefore, they provide great benefits of leverage in comparison to
the stock and index futures trade on the stock exchanges. The exchange
also requires the daily profits and losses to be paid in/out on open
positions ( Mark to Market or MTM) so that the buyers and sellers do
not carry a risk of not more than one day.
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