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: VAT RATES :: form 3cd :: VAT Audit :: Central Excise rule to resale the machines to a new company :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARD :: list of goods taxed at 4% :: empanelment :: cpt :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARDS :: articles on VAT and GST in India :: TDS :: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4%
« 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

Confusion over service tax on stock transaction fees
July, 28th 2006

Would brokers of the National and Bombay stock exchanges have to pay service tax on the transaction charges levied by the exchanges? The question is bothering many a member of these exchanges.

The issue came to light after some of the members of NSE, were issued show cause notices recently by service tax authorities.

Since the budget provisions this year had not clarified the picture, the Central Board of Excise and Customs may have to come out with a clarification on the subject soon.

Exchanges charge fees on brokers on the basis of the monthly business turnover. These fees are in addition to the system usage charge, deposits and margins that they collect from their members.

The problem on the service tax front has arisen because it is difficult for the brokers to pass the incidence on to their clients on a one-to-one basis, unlike the securities transaction tax, which is passed on.

The new levy would be in addition to the service tax, brokers charge clients as brokerage fees. The Association of Members of NSE of India (AMNI) has therefore given a representation to the indirect tax department on the issue, seeking a clarification.

Among the other levies brokers pay, is a fees imposed by Sebi, on a graded reducing scale for the first five years of their business.

According to service tax expert JK Mittal, while as per the trade practice, service tax is being paid on the brokerage charge from client, other charges recovered from the client may also be the part of value on which service tax is payable.

He said this is because of specific provisions (determination of value- rules 06). Therefore, there is a need to clarify the issue to avoid unnecessary litigation.

Brokers say that their clients usually pay up in a lump sum, for the trades conducted depending upon the methodology agreed between them.

The two usual methodologies followed are to either charge separately in each contract note over-and-above the brokerage, or on a combined basis.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Content Management System developers CMS developers Content Management Solutions CMS Solutions CMS India Content Management System India CMS development India Website CMS Website Content Management India Portal CMS India CMS Outsourcing CMS Vendor Complete CMS Custom CMS Services

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