2011 (5) TMI 615

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.... Navarangpura, Ahmedabad against the Order-in-Original passed by the Commissioner (No.STC/07/COMMR/AHD/2010, dt.19.04.10) confirming the demand of service tax of Rs.12,04,144/- on BSC transaction charges with equal penalty and ordering of interest at the appropriate rate. The Commissioner held that the liability to pay SEBI turnover charges as well as BSE transaction charges was on the appellants ....

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....rs' Service" under Section 65(101) of the said Act read with Section 65 (105)(a) of the said Act makes it clear that a stock broker like the appellant was obliged to pay service tax on purchase of securities, and therefore, any amount like transaction charges paid by the appellant to the exchange and claimed by way of only reimbursement from its client was not a recovery for rendering taxable serv....

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....eceived on account of NSE/BSE charges and SEBI turnover fees formed an integral part of the Stock Broker Service as well as Banking & other Financial Services. 4. The Bangalore Bench of the Tribunal's decision in the case of First Securities reported in 2007 (7) STR 690 (Tri.-Bang.) was that, handling charges collected from investors and amounts collected towards transaction charges cannot be equ....