TaxTMI 
TaxTMI 
2023 (10) TMI 744
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....on the transaction charges recovered, from their clients along with brokerage, from their customers, show-cause notices dated 31.12.2008 and 02.02.2009 were issued to the appellants seeking to recover service tax of Rs. 2,92,740/- and Rs.6,977/-, for the periods, October 2003 to March 2008 and 01.04.2008 to 15.05.2008 along with interest and penalty; the show-cause notices were adjudicated by the OIOs dated 05.01.2011 confirming the service tax demanded, imposing penalty of Rs. 2,92,740/- and Rs.6,977/- under Section 76 and penalty of Rs.5,85,480/- and Rs.13,954/- under Section 78 of the Finance Act respectively; on appeals filed by the appellants, the Commissioner (Appeals), vide the impugned orders dated 19.07.2013 and 18.07.2013, upheld ....
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.... Board of India (Stock Brokers [***]) Regulations, 1992; transaction charge is a fee payable by the Stock Broker to the Stock Exchange for using the stock platform; Stock Broker has to pay these charges in order to provide their service as Stock Broker to their clients. He further submits that while clarifying in respect of Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, SEBI vide Letter dated 20.07.2016 clarified that there is no dispute regarding the inclusion of service tax on brokerage and exchange transaction cost. He relies on Sriram Insight Share Brokers Ltd.- 2009 (14) STR 86 (Tri. Kolkata) and Sriram Insight Share Brokers Ltd.- 2019 (26) GSTL 231 (Tri. Kolkata) and submits that the issue stands settled by t....
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....ibunal has already gone into the issue of the includability of transaction charges in the service tax in the case of Sriram Insight Share Brokers Ltd.- 2019 (26) GSTL 231 (Tri. Kolkata). We find that the Tribunal has found as under: 5. Before answering the question (i) above; it is necessary to have a look at Section 67 of the Finance Act, 1994 which [is] reproduced: - 67. Valuation of taxable services for charging service tax. - For the purposes of this Chapter, the value of taxable services, - (a) in relation to service provided by a stockbroker, shall be the aggregate of the commission or brokerage charged by him on the sale or purchase of securities from the investors and includes the commission or brokerage p....
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....National Stock Exchange in their Circular dated 7th November, 1998 :- "It is hereby notified to all the Trading Members in the Capital Market Segment of National Stock Exchange of India Ltd. that with effect from 1st December, 1998, transaction charges in respect of trades done shall be payable by the Trading Members at the following rates until further notice :- ................ It is clarified that the reduced rates as given above will apply to only the incremental trade value falling under the respective slabs stated above. For example, a Trading Member who has traded for Rs. 250 crores in a calendar month will pay transaction charges of Rs. 1.85 lacs (i.e. @ 0.009% for the first Rs. 50 crores trade values, @ 0....