Do you trade or invest through FYERS? If yes, then you might receive a bunch of contract notes every time you move into the stock market.
But do you pay attention to them?
Well, don’t dismiss them as unimportant!
A contract note serves as a legal document that records the details of all the trades executed by a stockbroker on behalf of a client on a particular day. FYERS issues it to the client within 24 hours of the trade executed across exchanges, i.e., BSE, NSE, MCX, and serves as confirmation of the transactions and the charges incurred.
You can track your trading performance, transactions, profit, loss, taxes, and more! It safeguards your rights and interests against fraud or dispute with a broker/exchange.
In this blog post, let’s understand the contents of a contract note and why it matters to all sorts of traders and investors. So, let’s go!
What are the contents of a contract note?
Before we go ahead to understand the contents of a contract note, here’s a screenshot of what a contract note looks like:
As the contract note contains sensitive information, it is password protected. For FYERS traders and investors, the password is your PAN in capital letters.
Now, let's explore the contents of a contract note:
Order No.
It is a unique number assigned by the Exchange for each order executed. This number will change for each order executed via the FYERS trading platform.
Order Time
Order time highlights the exact time the order gets placed on the Exchange.
Trade No.
It is a specific number assigned for the different trades.
Trade Time
Trade time shows the exact time when the order gets executed. For instance, ITC stock is trailing at ₹445, and you placed a buy limit order at ₹443 at 10 a.m. The order was executed at 10.20 a.m. In this case, the order time is 10 a.m., and the trade time is 10.20 a.m.
Security Description
This column shows the name of the security/contract that was traded.
Buy/Sell
The B/S symbol will show the type of order placed through the platform.
Quantity
This tab highlights the number of shares or lots traded on a particular day. Buy orders will be shown as a positive number, and sell orders as a negative number.
Gross Rate/unit
The rate at which an order is executed on the Exchange.
Net Rate/unit
As the brokerage charged is calculated separately, the Net rate per unit is equivalent to the gross rate/unit.
Closing Rate/unit
Closing rate/unit is the rate applicable to derivatives contracts exclusively. It shows the rate at which the contracts traded closed at the end of the market session.
Net Total
This column shows the amount you are liable to pay/receive for the trades executed via the FYERS trading platform. Please note that this will not include brokerage or other taxes charged separately. A positive amount indicates the amount receivable from FYERS, and a negative amount highlights the amount payable to FYERS.
As shown in the screenshot, below the vertical table is a horizontal line describing the buy/sell quantities.
The latter half of the contract note encompasses the monetary elements, including net payable/receivable, brokerage, taxes, STT, and more.
Pay In/ Payout Obligation
The amount shown here will show the net total amount after considering debit and credit transactions before levying other charges.
Taxable value of Supply (Total Brokerage)
The next row shows the brokerage charges applicable to trades executed in a day on the FYERS platform. FYERS charges zero brokerage on equity delivery, ₹20 per executed order or 0.03% (whichever is lower) for futures trading, and ₹20 per executed order for options trading. For further details, click here to check out our pricing structure
Taxable Value of Supply (Other Charges)
The rows after brokerage accounts for the SEBI turnover fee, Clearing and Exchange transaction charges.
Applicable Taxes
In the next row, you can find details of the GST charged, i.e., CGST and SGST or IGST. FYERS is registered in Karnataka. So as per Income tax regulations, if you are a resident of Karnataka, CGST and SGST @9% each will be levied on the total taxable value of supply. If you're a resident of any other state in India, IGST @18% will be levied in lieu of CGST and SGST.
Securities Transaction Tax (STT)
STT is a direct tax levied by the exchange, collected by the broker and remitted to the Exchange. It applies to both buying and selling on equity delivery, and on selling in the case of intraday and F&O transactions.
NSE IPFT
These charges are levied by NSE to safeguard investors in case of financial misconduct or fraudulent behaviour that could result in losses for investors.
Net amount payable/receivable
The last row indicates the net amount payable/receivable after all the levies and taxes. A positive amount means the amount receivable by you, and a negative amount indicates the amount owed. Please note that DP charges, call, and trade charges are available in the ledger report and not specified in the contract note.
How is a contract note important for you?
Here’s a list of key points highlighting the importance of a contract note:
Trade Summary
It compiles all your daily trades and transactions, providing a comprehensive view.
Price Discrepancies
If you have any doubt about the slight variations in selling/purchasing prices, a contract note provides a quick insight into the same.
Charges and Tax Summary
All brokerage charges, including taxes, are consolidated in one place within the contract note.
Tax compliance/ Capital gains
Users can refer to contract notes for the amounts received when calculating capital gains.
Legal Document
In any dispute, a contract note serves as a crucial, legitimate document.
Transparency
It enhances transparency by enabling you to verify your trades and transactions easily.
How can you download FYERS contract notes?
Open Fyers.in My Account Reports Bills & Contracts.
Check out the gif below for the process to download a contract note.
Conclusion
In summary, contract notes offer investors a concise summary of their daily trades, including a comprehensive overview of their profits and losses. Furthermore, these contract notes are conveniently available in an electronic format, complete with a digital signature, for added security and convenience. You can also access your P&L, trade details and charges from 'My Account' section.
If you're new to FYERS, explore our platform and App 2.O by opening your demat account with us. Click here to open your account.