TaxTMI 
TaxTMI 
TaxTMI 
2019 (8) TMI 32
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....y the Authority for Advance Ruling, Uttar Pradesh. At the outset, we would like to make it clear that the provisions of both the CGST Act and the UPGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the UPGST Act. Brief facts of the case 1. M/s. SPFL Securities Limited 15/63-M, SPFL House, Civil Lines, Kanpur, Uttar Pradesh, 208001 (here in after called the applicant) is a registered assessee under GST having GSTN : 09AABCS2452CIZP. 2. The applicant is engaged primarily in the business of providing service of stock broking i.e. purchasing and selling....
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....f considered will turn the whole balance of convenience in favour of the Appellant. The impugned Ruling has failed to consider the S. No. 80 of FAQ on Banking, Insurance, stock issued by CBIC, The said S. No. has clearly mentioned that :- S. No. Question Answer 80 Is GST leviable on interest/delayed payment charges charged to clients for debit settlement obligations/ margin trading facility? Any interest/ delayed payment charges charged for delay in payment of brokerage amount/settlement obligations/margin trading facility shall not be leviable to GST since settlement obligations/margin trading facilities are transactions which are in the nature of extending loans or advance and are covered by entry No. 27 of notification No. 12/....
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....CA represented the firm M/s. SPFL Securities Ltd., Kanpur. Mr. Prakhar Gupta, CA submitted that the issue relates to late payment charge towards amount remaining unfulfilled within (T+1) norms provided by stock exchange. Their contention has been that the said charges are not on the account of stock broking activity on which due tax liability is discharged, in fact it is on amount remaining unfulfilled (short paid) at the time of initial purchase of stock between stock broker and client within the stipulated time i.e., (T+1). His contentions have been since the transaction between him and his client is outside GST. Therefore, if the principal is out of GST there can be any tax levied on any further interest or delayed payment charge. He als....
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....es on the Exchange through the broker. Payments to Stock Exchange, for such purchase of securities, where payment are not made by clients for purchase of securities of the Stock Exchange (within T+1 i.e. trade day plus one day) as per SEBI regulations, stock exchange debits account of the Broker against said purchases. Falling which the business of brokers stands shut by stock exchange under its regulations by closing trading terminal of the stock broker. 10. Client reimburse said amount to broker with charge for delayed payment. In this case, any amount which is overdue from the client towards trading or on account of any other reason to the broker will be charged from the client at the rate of 18% P.A. 11. The na....
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....currency or denomination for which a separate consideration is charged; [Explanation. - for the removal of doubts, it is hereby clarified that the expression "services" includes facilitating or arranging transactions in securities;] the corresponding delayed payment charges which are also linked to the above service of trading of securities should also stand exempt under GST. 13. Another point raised by the Appellant is regarding the FAQ on the Banking, Insurance, Stock amended by the C.B.I & C. on 27-12-2018, needs to be taken into consideration, which clarified that the GST shall not be applicable on delayed payment charges. "(Q. 80) Is GST leviable on interest/delayed payment charges charged to clients for debit for se....