Stock Broker's Services - Levy of Service Tax - Delayed payment charges would not be includible in 'gross value charged' only if these charges are shown separately in the account statement/invoice/bill etc.

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....regarding leviability of service tax on the additional amount that is collected towards the delay in making payment to the stock brokers by their customers (delayed payment charges) in respect of Stock Broker's services. 2. The matter has been examined. Clarifications issued by the Board in the past on similar issues are summed up below:- (i) Circular No. 96/7/2007 at para 002.01 clarifies that ....

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....e not the charges for providing taxable services. Such charges are on account of delay in making payments by the service recipient to the service provider and are in the nature of a penal charge for not making the payment within stipulated time. Such amounts are not includible in the taxable value for charging service tax. This principle will also apply to other service providers. 3. However, sec....