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

[parameswaran ramalingam]

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

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.