Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: empanelment :: form 3cd :: VAT RATES :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD :: articles on VAT and GST in India :: TAX RATES - GOODS TAXABLE @ 4% :: VAT Audit :: list of goods taxed at 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: due date for vat payment :: ACCOUNTING STANDARDS :: cpt :: TDS :: ARTICLES ON INPUT TAX CREDIT IN VAT
« News Headlines »
 ICAI to organise two-day international conference in Hyderabad
 Here's how to calculate tax payable on your capital gains
 Income Tax calculations for the financial year 2016-17
 CPE Events 17 October - 22 October 2016
 High Court raps I-T Department for wrong tax demand
  CBDT signs 5 advance pricing pacts with Indian taxpayers
 Finance ministry warns tax officials of action against GST protest
 Big changes for small units under GST
 Parliament’s winter session to begin on November 16 to expedite GST rollout
 Income-tax (27th Amendment) Rules, 2016 - 92/2016
 Announcement - Clarifications in Respect of MEF 2016-17

Stockbrokers under lens for evading service tax
January, 04th 2008
Stockbroking firms involved in marketing of IPOs have attracted the ire of service tax department for not paying tax on the activity.

These firms may be issued show cause notices.

After an extensive audit, the department has found most firms were not paying service tax for IPO-related marketing activities even as they received fat commissions for the same.
Stockbroking is a taxable service attracting 12% tax on all related transactions. Service tax is collected from the clients of stock brokers. However, marketing of IPOs does not get covered under the stock broking service as it is essentially a business auxiliary service.

Stock broking firms charge 0.1-0.25% as commission for marketing IPOs from the registrars to any issue. The charges are higher in the high networth individual segment. Sources said most stock broking firms were not charging service tax on the service fee received from registrars. In service tax regime, the liability to collect the service tax lies with the provider, who has to collect it from the consumer and deposit it with the government.

A large number of companies tapped the capital market last year. The number of IPOs in 2007 stood at 107 against 92 in 2006. The total amount raised through the issues was Rs 45,137 crore, compared to Rs 24,679 crore in 2006.

There have also been instances of non-payment in the broking segment, especially in the futures and options segment. Brokers were found to be conducting trading in derivatives on behalf of clients in their own trading account to avoid service tax.

The service tax department has upped its ante on the stock broking service, which despite booming markets did not show very encouraging growth. In the first half of the current fiscal, the stock broking service grew just 18% to Rs 523.82 crore. Interestingly, securities transaction tax reflected the buoyancy in markets and grew by over 74% in the first nine months of the fiscal.
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Application Management Solutions Application Management System Application Management Software System Application Management Development Application Management Software Development

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions