Is the principal Stock Broker who pays brokerage to sub-broker,liable to charge Service Tax on brokerage paid?
Dilip Darji
(392 Points)
Replied 25 November 2009
Dear Sir.
Prior to 10/09/94, Sub-brokers were not covered for Service Tax Liability.
After 10/09/09, broker and sub-broker both are liable to pay service tax.
Accordingly, if principle broker have availed the service of sub-broker and paid brokerage to sub-broker, principle Broker is liable to Service Tax.
DILIP DARJI.
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