Branded service test for sub-brokers: use of the main broker's brand did not defeat small scale exemption.

A sub-broker acting as a commission agent for a stock-broker was not providing a branded service merely because it used the main broker's brand name. The service was rendered to the stock-broker, and the trading transaction was between the stock-broker and the ultimate client, so the brand-name objection did not defeat small scale exemption under Notification No. 06/2005-ST. As the aggregate value of taxable service remained within the relevant exemption limit, the exemption was available.

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Issues: Whether the sub-broker's service could be treated as a branded service so as to deny small scale exemption under Notification No. 06/2005-ST.

Analysis: The appellant acted as a commission agent for the stock-broker, and the stock-trading transaction was between the stock-broker and the ultimate client. The service was rendered to the stock-broker, and the use of the brand name of the main stock-broker did not make the service a branded service of another person. Since the aggregate value of taxable service remained within the exemption limit of Rs. 4 lakhs in the relevant financial year, the exemption was available.

Conclusion: The service was not a branded service and the appellant was eligible for small scale exemption under Notification No. 06/2005-ST.

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