Transaction amounting to Taxable Service subject to Service Tax — Regarding - Service Tax - F. No. 148/3/97-CX.4,

This Circular has been rescinded by Circular No. 93/4/2007-ST , Dated : May 10, 2007 Board's F. No. 148/3/97-CX.4, dated 9-9-1997 Transaction amounting to Taxable Service subject to Service Tax Regarding As per the clarification contained in Board's Service Circular No. 20/14/ 96, dated 31-12-1996, only when the transaction is between the broker who functions as a principal with a non-member of the Stock Exchange, that service would be a taxable service. In other words, when the broker on his own account sells the security to non-member or purchases the security from a non-member, he functions as a constituent in the said transaction and the service provided to him will be a taxable service. If the broker enters into a transaction on his own account as a constituent on the floor of the stock exchange of which he is a member with another member transaction would be same as "jobbing" and therefore not liable to service tax. No modification is necessary in the Circular mentioned, supra.