SUB-BROKER TO BE ADDED THE BROKER CENTRALIZED REGISTRATION OR NOT

[Guest]

Dear Sir,

The company nature of business is stock broking. it is registered under NSE and BSE as per SEBI regulation. The assessee was created sub-brokers in all around India. The revenue has been generated from own branches as well as sub-brokers. The company is centralized service tax registration for their own branches not for sub-brokers. But entire broking charges are taxable at the hand of stock broker not from the sub-broker as per amendment M.F. (D.R.) letter D. O. F. No. 334/13/2009-TRU dated 06.07.2009.

 

My question is : Whether SUB BROKER to be added the stock broker centralized registration or NOT

[YAGAY andSUN]

There is no requirement to include the sub broker in the Centralized Registration Certificate.

[Guest]

Thanks for your instant repy. pls provide if you having any notification or circular relating to non requirement of sub-brokers not to be added with stock broker centralized registration.

[Vivek Harsh]

Notification No. 31/2009 -ST dated - 01-09-2009 Exempt Services in relation to sale or purchase of securities listed on a registered stock exchange by a sub-broker................my view is that when stock brokers are exempt from services question of adding SUB BROKER to  stock broker centralized registration or NOT doesnot arise.

[DEV KUMAR KOTHARI]

Replies of learned readers is correct. There is exemption for services of sub-brokers, the exemption is also with a view to simplify the admininstration becasue in case sub-brokers are not exempted, their services shall be input service to main broker/ member of S.E. and they will get credit for tax if levied by sub-broker. Therefore, sub-brokers need not be added in Centralized Registration.

AI Summary

Stock broking company exempt from including sub-brokers in centralized service tax registration under securities transaction exemption. A stock broking company, registered under NSE and BSE, inquired about whether sub-brokers should be included in the centralized service tax registration. The company generates revenue from both its branches and sub-brokers, with all broking charges being taxable at the stock broker's level. Responses indicated that sub-brokers do not need to be included in the centralized registration due to an exemption for services related to securities transactions. This exemption simplifies administration, as sub-broker services are considered input services to the main broker, who would otherwise receive tax credit.