Buying/Selling of securities by a Member of one stock exchange through a member of another stock exchange on behalf of an investor

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..... xchanger by various quarters. The situation envisaged is as under :- If a Calcutta based investor buys a security quoted on the Bombay stock exchange through his broker in Calcutta, he ends up paying service tax twice, first to the Bombay stock exchange broker then to the Calcutta stock exchange broker through whom the initial order was placed. In a situation like this, it has been repres .....

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..... ay stock exchange broker through the Calcutta stock exchange broker and then by the Calcutta stock exchange broker. Since, the Commission/brokerage is charged at both the ends, the charge of service tax at both the ends is both conceptually legally correct. The investor placed his order for buying a security quoted at the Bombay stock exchange for the reason that either it is not available at .....

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..... exchange broker direct. The service tax being the percentage of the brokerage charged from the investor there is no double taxation involved. Service tax charged is only incidental to the charging of the commission/brokerage charged by the brokers. It is, therefore, clarified that charging of service tax from an investor who is provided with taxable service by two brokers of different stock .....

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