2017 (4) TMI 1134

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....ee collected by the appellant from their clients and paid to the stock exchange as a custodian. Revenue held a view that the transaction fee has to be included in the gross taxable value and will be subjected to service tax at the hands of the appellant as provider of taxable service to the clients. It is held that the appellants collected this transaction fee from their clients in addition to brokerage, in consideration of the "forward contract service" provided by them during the period 10.09.2004 to 30.04.2006. 2. Ld. Counsel for the appellants submits that the impugned order held that there is no supporting evidence to substantiate that the appellants were collecting transaction fee from their clients and passing it on to the commodity....

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..... 5. The dispute is relating to the tax liability of the appellant with reference to transaction fee collected by them from their clients as part of the bill amount during the course of providing taxable service to their clients. The ld. Counsel for the appellant submitted specimen copies of the daily MTM bills raised by the appellant. In the said bill, the transaction fee is specifically mentioned separately, apart from brokerage and service tax on brokerage. We have perused Circular dated 30.09.2004 of Multi Commodity Exchange of India Ltd. The said circular stipulated that the transaction fee is required to be paid by the members based on the daily turnover in all the futures contracts traded at the exchange. The transaction fee applica....