service tax on sub broker of stock exchange

This query is : Resolved

srinidhi (Querist)
Follow

02 September 2008 i want to know whether a sub borker having
taxable service i.e commission form the main borker less than Rs. 10 lakh is chargabe to service tax or not.

here in this case the sub broker issues the contract note in the name of the main borker and raises bill for commission receivalbe by him to main broker

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
Follow

02 September 2008 In view of the fact that the commission charged is less than 10 lacs, the sub-broker is not required to charge Service Tax

srinidhi

srinidhi (Querist)
Follow

03 September 2008 the assessee has received letter from service tax depatment address to main broker and has stated that the exemption under notification 06/2005-ST Dated 01-03-2005 is ammended are not applicable in the case of sub brokers.

They are providing the services on behalf of the stock brokers (main borkers) and contract note evidencing the sales of purchase of securities are issued by the main stock brokers
Sub borkers on his own canot provide a service in relation to buying or selling of securities listed on stock exchange. Hence the sub borkers are providing taxable service under the trade name of other person and hence the above emption is not availbale to them.

Upgrade to CAclubindia Pro. Subscribe Now!