https://www.taxtmi.com/caselaws?id=767188 The CESTAT New Delhi held that Delayed Payment Charges (DPC) collected by stockbrokers from clients are not includible in taxable value for service tax purposes. The Tribunal ruled that DPCs are penal charges for delayed payments rather than consideration for separate services, distinguishing between contractual conditions and consideration. Citing departmental Circular 137/25/2011 and precedent from Religare Securities Limited, the Tribunal emphasized that consideration must flow from service recipient to provider for actual services rendered. The stockbroking service is complete when securities transactions are settled, making DPCs merely penalty charges outside taxable scope. The impugned order was set aside and appeal allowed. en-us Mon, 10 Mar 2025 00:00:00 +0530 Wed, 12 Mar 2025 09:06:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=767188 The CESTAT New Delhi held that Delayed Payment Charges (DPC) collected by stockbrokers from clients are not includible in taxable value for service tax purposes. The Tribunal ruled that DPCs are penal charges for delayed payments rather than consideration for separate services, distinguishing between contractual conditions and consideration. Citing departmental Circular 137/25/2011 and precedent from Religare Securities Limited, the Tribunal emphasized that consideration must flow from service recipient to provider for actual services rendered. The stockbroking service is complete when securities transactions are settled, making DPCs merely penalty charges outside taxable scope. The impugned order was set aside and appeal allowed. Case-Laws Service Tax Mon, 10 Mar 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=767188