Buying/selling of securities by a member of one stock exchange through a member of another stock exc

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....O 10/4/96 DATED -17-04-1996 Representations have been received by the Board by various quarters for clarifications whether Service Tax is chargeable at both the ends when an investor is provided with taxable service by two brokers of different exchanges. The situation envisaged is as follows: If a Calcutta based investor buys a security quoted on the Bombay Stock Exchange through his brok....

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....broker to an investor shall be the aggregate commission or brokerage charged by him on the sale or purchase of securities. In the situation pointed out above, the investor is provided with taxable service by two brokers. First by the Bombay Stock Exchange broker through the Calcutta Stock Exchange broker and then by the Calcutta Stock Exchange broker. Since the commission/brokerage is charged a....

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....e exchanges through the Calcutta Stock Exchange broker. It cannot, therefore, be said that the investor is paying Service Tax twice. The investor in fact pays double commission for avoiding the hassles involved in going to the Bombay Stock Exchange broker direct. The service tax being the percentage of the brokerage charged from the investor, there is not double taxation involved. Service Tax char....