Monarch Research & Brokerage P Ltd Vs C.S.T.-Service Tax – Ahmedabad (CESTAT Ahmedabad)
The issue involved in this case is whether NSE/BSE transaction charges and SEBI turnover fees paid by the stock brokers to the concerned agencies and recovered from their client is liable to service tax under the category of stock broker service.
On Appeal CESTAT held that NSE/BSE transaction charges and SEBI turnover fees is not liable to service tax under head of “stock broker service.
FULL TEXT OF THE CESTAT AHMEDABAD ORDER
The issue involved in this case is whether NSE/BSE transaction charges and SEBI turnover fees paid by the stock brokers to the concerned agencies and recovered from their client is liable to service tax under the category of stock broker service.
2. None appeared for the appellant. We have heard Learned AR and perused the record. We find that this issue is no longer res- integra as this tribunal decided this issue vide final order No A/12707-12708/2018 dated 05.12.2018 in the case of M/s Kunvarji Finstock Pvt Ltd wherein
considering various judgments following order was passed.
“Brief facts of the case are that the appellant are engaged in providing Service under the category of Stock Broker as defined under Section 69 of the Finance Act, 1994 (herein after referred to as “the Act”) and hold a valid Service Tax Registration No. AAACK8760EST001. It was observed that the appellants had not paid Service Tax on certain amount received on account of their services, such as NSE/BSE transaction charges and SEBI turnover fees which forms an integral part on their services viz. Stock Broker Service. The case of the department is that the appellants were availing wrong exemption on certain amount received by them during providing their taxable services, such as NSE/BSE transaction charges and SEBI turnover fees as non-taxable amount. However it was observed that they were charging and collecting such amount in their billing / contract notes from their clients/ customers. Accordingly, the Services Tax remands of such NSE/BSE charges were proposed the same confirmed by the adjudicating authority. The Ld. Commissioner (Appeals) in the appeal filed by the appellant also upheld the demand confirmed by the Original Authority, therefore, the present appeals.
2. Shri. Jigar Shah, Ld. Counsel appearing on behalf of the appellant at the outset submits that the identical issue has been considered by this Tribunal in the appellants own case as well as in the other cases also, wherein, it was upheld that similar NSE/ BSE charges collected from the client of the Stock Broker need not to be imported in the gross value of Stock Broker. He place reliance on the following judgments.
