Service tax on broker services: tax applies to each broker's commission when separate brokerage services are provided. Taxable service for sale and purchase of securities is the service a stockbroker provides to an investor and is valued by the aggregate commission charged by that broker. When an investor engages a local broker who routes the order through another-exchange broker, two distinct taxable services exist because commission is charged by each broker; accordingly Service Tax applies on each broker's commission and does not constitute double taxation.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Service tax on broker services: tax applies to each broker's commission when separate brokerage services are provided.
Taxable service for sale and purchase of securities is the service a stockbroker provides to an investor and is valued by the aggregate commission charged by that broker. When an investor engages a local broker who routes the order through another-exchange broker, two distinct taxable services exist because commission is charged by each broker; accordingly Service Tax applies on each broker's commission and does not constitute double taxation.
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