Service tax - Show Cause Notices issued to various NSE Members of Association for recovery of Service Tax on Transaction charges of NSE, SEBI fees, DEMAT charges, Stamp Duty - reg.

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....ted: September17, 2010 Subject: Service tax - Show Cause Notices issued to various NSE Members of Association for recovery of Service Tax on Transaction charges of NSE, SEBI fees, DEMAT charges, Stamp Duty - reg. Kindly refer to your letter F. No.V/30-32/CCO/S. Tax/2009 dated 13.04.2010 on the subject mentioned above. 2. The matter has been examined and the views of DGST and Commissioners of Se....

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.... that various expenditure or costs are separately indicated in the invoice or bill issued by the service provider to his client". Para 4.1.8 states that "the service provider in the course of providing any taxable service may incur certain expenditure or cost as a pure agent of the client. The service provider seeks to exclude such expenditure or cost incurred by him as a pure agent of his client ....

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....on Tax, are the liability of the buyer/seller of securities and the broker pays the same acting as a Pure Agent the same are not includible in the taxable amount in terms of Rule 5(2) of the Service Tax (Determination of Value) Rules, 2006. All other charges by whatever name called recovered by the broker from the buyer/seller of securities are includible in the taxable value in terms of Rule 5(1)....