Service tax rate - Stock broking

[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

Stock broker advised to pay differential service tax for days before rate change, regardless of client recovery. A stock broker raised a query about charging clients a higher service tax rate starting April 20, 2006, and sought advice on remedial measures. The response advised that the broker must deposit the differential tax for the days prior to the rate change, regardless of whether they can recover the additional amount from their clients.