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: TDS :: form 3cd :: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARDS :: list of goods taxed at 4% :: cpt :: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: due date for vat payment :: VAT Audit :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: VAT RATES
 
 
News Headlines »
 Delhi: 54 CAs, company secretaries on radar in I-T crackdown against black money
 10 most important income-tax changes which will apply from April 1
 10 Income Tax Rules That Will Change From April. See Details Herea
 Looking for last-minute tax planning with Section 80C investments? Here's help
 Aadhaar mandatory for filing income tax return
 Will Aadhaar linkage solve India's income tax woes?
 GST roll out from July 1 will make goods cheaper: Jaitley
 Aadhaar To Be Mandatory For Filing Income Tax Return, PAN Application
 7 best tax-saving solutions which can help you save money
  No proposal to replace Income Tax with Banking Cash Transaction Tax
 How to Make Tax Saving Investments Less Taxing with an SIP in ELSS

Tax relief likely for brokers
April, 28th 2007

Stock exchange members, who have been on the tenterhooks for the past one year due to the possibility of service tax being levied on transaction charges, may be in for some good news.

The finance ministry is veering around to the view that transaction and certain other charges collected by stock exchanges would not attract service tax.

Stock exchanges collect a transaction charge, securities transaction tax (STT) and stamp duty from its members. The transaction charge is collected from a member as a percentage of his business turnover. This is in addition to the annual membership fee that the exchange charges from its members.

STT and stamp duty (which is not levied on demat shares) are paid by the client but collected by the government from stockbrokers for administrative convenience. These charges are essentially passed on to clients by the brokers.

Brokers had opposed the idea of levying a service tax on the transaction charge, STT and stamp duty. They argued that these are costs and there is no service rendered to clients. There is a separate service tax on the brokerage fee that a client pays to a broker.

A local court in Indore has ruled against the levy of service tax on these charges. The finance ministry, which had asked the industry to give its financial data, has carried out a detailed analysis. A clarification in this regard is expected to be issued soon by the Central Board of Excise and Customs.

This has been a long-pending demand. These charges are merely actual costs that members recover from their clients. So there is no question of service tax being levied on them. I hope the issue is clarified soon to clear the air, Association of National Stock Exchange Members of India (ANMI) president Nirmal K Agarwal said.

Field formations in various parts of the country had asked stock exchange members to pay service tax on these charges. The demand was made on account of data transfer services being brought into the tax net since 2001.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - We Bring IT. Offshore software outsourcing company. We use Global Delivery Model (GDM) and believe in Follow The Sun principle

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