« Top Headlines » Open DEMAT Account in 24 hrs  Income-Tax Department Moves to Bring Greater Certainty to International Tax Cases  ITR Defective Notice for AY 2026-27: Reasons, 15-Day Deadline and What Happens If You Ignore It  ITR Refund Status 2026: How to Track Your Income Tax Refund Online – Step-by-Step Guide  GST Council Explores Andhra Pradesh’s AI-Driven Tax Administration Model  ITR filing 2026: Who must file by August 31? Tax department explains  Delhi HC Rules GST Registration Cannot Be Cancelled Retrospectively Without a Clear Show Cause Notice (SCN)  Belated income tax return AY 2026-27: How to file, late filing charges and what you may lose  Major Financial Changes from August 1, 2026: ITR Deadline, RBI MPC Meeting, Tatkal Ticket Rules & More  Government proposes to ease tax relief conditions for offshore funds  TallyPrime Connected Banking: Automating Banking and Accounting  ITR Filing Deadline 2026: Is July 31 the Last Date to File Your Income Tax Return? Latest Official Update «  ICAI proposes to introduce biometric smart cards... Telcos to face special service tax audits... » Brokers take up service tax issue with FMC December, 14th 2006 Brokers have urged the Forward Markets Commission (FMC) to clarify on the service tax on exchange transaction charges in commodity futures trading.    In a recent meeting between the members of national commodity exchanges in the south zone and the regulator, almost all brokers expressed concerns over the issue as they see the tax as a huge financial burden on them.    Broking firms had to remit a huge sum as the service tax on exchange transaction charges as it had been due effective from October 2004.    It is learnt that FMC Chairman S Sundareshan assured the members that the commission had already taken up the issue with the ministry of consumer affairs and a solution would be reached soon.    In the capital markets, the service tax is collected only on the brokerage at a rate of 12.2 per cent. But for the commodity futures mart, the central excise department even insists on tax on exchange transaction charges. And the department issued several notices in this regard.    A director of a leading brokerage said it was a discrimination to collect tax on transaction charges. He stressed that the same procedure should be practised in both the capital and commodity markets.    We paid crores of rupees on the instruction of the excise department. This part is the income of the exchanges why should we pay for that, he said.    Earlier, a section of brokers had appealed to the department and also sought the intervention of FMC.    A top official of a leading broking house of the country said what was happening was owing to lack of necessary guidelines from the government. There was no logic behind adopting double standards for a similar line of business.    After getting assurance from the FMC chairman of taking up the issue seriously and settling it amicably, broking firms are hoping for the best, keeping their fingers crossed.