S. Tax query

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

04 February 2011 XYZ Ltd. (Outside India) will appoint A (in India) to execute payment/receipts on account of purchase and sale of shares through savings bank account of NRIs maintained and appoint B (in India) to execute purchase and sale of shares. A will charge Rs. 100 as transaction charges from NRI customers (which will be collected in India). A will retain Rs. 25 and balance Rs. 75 will remit to XYZ Ltd.. B will charge 1% brokerage from NRI customers (which will be collected in India).B will retain 75% of the brokerage and balance 25% remit to XYZ.

What will be service tax liability of each XYZ Ltd., A and B. How XYZ will treat service tax payment (if any) in its books