| Q.1 |
Who is a Stock Broker?
When does the service provided by Stock Broker become liable
to pay Service Tax? |
| Ans. |
Stock Broker is a person
who has either made an application for registration or is registered
as a stock broker under the rules and regulations of Securities
and Exchange Board of India Act, 1992. The service provided
by the stock broker becomes liable to levy of when
- Stock Broker is registered as per SEBI Act, 1972.
- Stock is listed in the Stock Exchange.
- The Stock Exchange is recognised Stock Exchange
as per Securities Contract (Regulation) Act, 1956.
- The Sale/Purchase are on behalf of an investor.
|
| Q.2 |
What is the value
of taxable service in case of service provided by Stock Broker?
|
| Ans. |
The value of the taxable
services, provided by a Stock Broker, is the aggregate of the
commission or brokerage charged by such broker on the sale or
purchase of securities from the investors and includes the commission
or brokerage paid by the broker to any sub-brokers. |
| Q.3 |
Are there any transactions/charges
undertaken/received by Stock Broker which are not chargeable
to Service Tax? If so which are those transactions? |
| Ans. |
Following transactions
undertaken by the Stock Brokers do not attract the levy of Service
Tax :-
- Private placement charges,
- Public issue consultancy fee,
- Brokerage for primary market operations,
- Stock Broker’s own transaction.
- Jobbing business.
- Arbitrage.
|
| Q.4 |
Is a Stock Broker
required to have separate registration for each of the offices
when all offices are not falling within the same Commissionerate?
|
| Ans. |
No, a Stock Broker registered
with a particular Stock Exchange has to apply for registration
with the Commissioner of Central Excise having jurisdiction
over the place in which the concerned Stock Exchange is situated,
irrespective of whether all the offices of the Stock Broker
are situated within or outside the jurisdiction of the said
Commissionerate. |
| Q.5 |
Whether a suspended
share broker should continue to hold registration or should
surrender the registration ? |
| Ans. |
- When a registered assessee ceases to carry on the service
for which he is registered, he should surrender his registration
certificate immediately to the Central Excise authority.
- A suspended share broker can continue to hold registration,
if he so desires, but he should then file NIL return to
the Central Excise authority
|
