Service tax rate - Stock broking

[Asked by Guest]

we are the stock brokers and charged the service tax to all our clients at the higher rate from 20 the of april 2006 now what remedial measure should i have to undertake in this regard

[Surender Gupta]

You are required to deposit the differential tax for the previous days irrespective of the fact that you are in a position to recover the same from your clients or not.

AI Summary

Service tax obligation: stock brokers must remit differential tax for prior days regardless of client recovery.
Advisory guidance requires stock brokers to deposit the differential service tax for the prior days following a rate increase, irrespective of whether the broker can recover that differential from clients; the obligation to remit the shortfall rests with the service provider.