Section 100 – Collection and recovery of securities transaction tax.

• Section 100(1) states that every Recognised Stock Exchange to collect Securities transaction tax from every person who enters into a taxable securities transaction in that stock exchange. The tax will be charged at the rate specified in Section 98.
• Section 100(2) states that the prescribed person in the case of every Mutual Fund [or insurance company] shall collect the securities transaction tax from every person who sells a unit to that Mutual Fund [or insurance company], at the rate specified in section 98.
• Section 100(2A) states that the lead merchant banker appointed by the company in respect of an initial public offer shall collect the securities transaction tax from every person who enters into a taxable securities transaction referred to in sub-clause (aa) of clause (13) of section 97 at the rate specified in section 98
• Section 100(2B)  states that the lead merchant banker appointed by the business trust in respect of an initial offer shall collect the securities transaction tax from every person who enters into a taxable securities transaction referred to in sub-clause (ab) of clause (13) of section 97 at the rates specified in section 98
• The securities transaction tax collected during any calendar month shall be paid to the credit of the Central Government by the seventh day of the month immediately following the said calendar month.
• In the event of the failure of any recognised stock exchange or the prescribed person in the case of every Mutual Fund [or insurance company] [or the lead merchant banker in the case of an initial public offer] [or an initial offer] to collect the tax, that prescribed person/entity shall be liable to pay the tax.
• Section 101 states that every recognised stock exchange or the prescribed person in the case of every Mutual Fund [or insurance company] [or the lead merchant banker in the case of an initial public offer] [or an initial offer] shall furnish a return to the Assessing officer  setting forth such particulars as may be prescribed, in respect of all taxable securities transactions entered into during such financial year in that stock exchange or, as the case may be, in respect of all taxable securities transactions, [during such financial year, being sale of units to such Mutual Fund [or insurance company] or sale of unlisted shares under an initial public offer or sale of unlisted units of business trust under an initial offer, in respect of which such lead merchant banker is appointed].