Definition - Sub broker - Case law

[HIMANSHU JARIWALA]

Whether the person who is holding the remissiorship of the stock broker be treated as sub broker? For example, Mr.X is holding remissiorship of India Infoline. He is issuing contract note cum bill of India Infoline to his client, for which he is issuing bill of commission & brokerage to India Infoline. Whether this exemption notification is applicable to him? Whether he is treated as sub broker of India Infoline. whether any case law on this matter?

[Surender Gupta]

Can u elaborate your query about the scope of service. Is it limited to delivery delivery of contract note cum bill from the client to the customers of the client. Whether he is required to deal with the sale and purchase of shares on behalf of main broker. Merely having any contract with the stock broker may not make a person to be treated as a sub-broker. The scope of sub-broker for the purpose of service tax is limited one.

AI Summary

Classification of Remissiorship as Sub-Broker for Service Tax Depends on Specific Activities, Not Just Broker Contract A query was raised regarding whether an individual holding a remissiorship with a stock broker, such as India Infoline, can be classified as a sub-broker for service tax purposes. The individual issues contract notes and bills to clients and receives commission and brokerage from India Infoline. The response highlighted that merely having a contract with a stock broker does not necessarily classify someone as a sub-broker. The scope of being a sub-broker for service tax purposes is limited and depends on the specific activities involved, such as dealing with the sale and purchase of shares.