2017 (9) TMI 941

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....apital Ltd. (main contractor) as per which the main contractor were to enter into an agreement with mutual fund companies to explore investment in mutual funds, corporate finance, portfolio management services, IPO shares and bonds or any other financial products by prospective investors, for the said companies. Then on, the applicant, alongwith the main contractor were to operationalize the said agreement. The mutual fund companies paid the commission for the said activities to main contractor on which the service tax liability was duly discharged. The main contractor then passed some of his share of commission received to the applicants. Department issued show cause notice for demand of service tax on the commission received by the applic....

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....ide that when an application is made by a person for registration as a sub-broker or a person registered as such under SEBI Act 1992 read with the regulations made thereunder, shall be called as stock-broker. So also there is no dispute that in terms of Section 65(105)(a) of Finance Act, 1994 services provided to any person by a sub-broker or stock broker in connection with the sale or purchase of securities listed on a recognized stock exchange shall be taxable service from the aforesaid date. So also, a sub-broker who is registered or has made an application for registration as such under SEBI Act, 1992, is permitted to provide similar service as provided by a stock broker. The service so provided becomes taxable service under Finance Act....