https://www.taxtmi.com/caselaws?id=795305 Delayed payment charges recovered by a stockbroker for clients' settlement defaults or margin trading obligations are penal and compensatory amounts for overdue payments, not consideration for stockbroking services or for agreeing to tolerate an act under Section 66E(e). Such charges arise only after the broker discharges exchange settlement obligations, while contractual penalty clauses protect commercial interests and do not make delayed payment the object of the arrangement. Departmental service-tax and GST circulars similarly recognise that delayed payment charges are not consideration for taxable services. Accordingly, these charges are not taxable as a declared service. en-us Mon, 13 Jul 2026 00:00:00 +0530 Tue, 21 Jul 2026 08:32:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=795305 Delayed payment charges recovered by a stockbroker for clients' settlement defaults or margin trading obligations are penal and compensatory amounts for overdue payments, not consideration for stockbroking services or for agreeing to tolerate an act under Section 66E(e). Such charges arise only after the broker discharges exchange settlement obligations, while contractual penalty clauses protect commercial interests and do not make delayed payment the object of the arrangement. Departmental service-tax and GST circulars similarly recognise that delayed payment charges are not consideration for taxable services. Accordingly, these charges are not taxable as a declared service. Case-Laws Service Tax Mon, 13 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=795305