The government on Wednesday (02.09.2009 ) exempted business auxiliary services provided by sub-brokers to stock brokers, or by anybody to someone engaged in manufacturing of excisable items like pharmaceuticals, medicines and perfumes from paying service tax.
In a notification, the Central Board of Excise and Customs said the business auxiliary service provided by a sub-broker to a broker in relation to sale or purchase of securities would be exempted from service tax. Finance minister Pranab Mukherjee has proposed in the Budget to amend the definition of business auxiliary service to exclude those services from the purview of service tax on which excise duty is leviable.
Notification is as Follows:-
Notification No. 31/2009-Service Tax
New Delhi, Dated- 1st September, 2009.
G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the Finance Act), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service referred to in sub-clause (zzb) of clause (105) of section 65 of the Finance Act,1994, provided by a sub-broker, to a stock-broker as defined in clause (101) of Section 65 of the Finance Act,1994, in relation to sale or purchase of securities listed on a registered stock exchange from the whole of the service tax leviable thereon under section 66 of the said Finance Act.
Under Secretary to the Government of India