Service tax on broker-issues raised by commissioner regarding - Service Tax - 04/04/94

This Circular has been rescinded by Circular No. 93/4/2007-ST, Dated: May 10, 2007 SERVICE TAX CIRCULAR NO 4/4/94 DATED-06.09.1994 Service tax on broker-issues raised by commissioner regarding Various Collectorates have expressed their doubts on certain points relating to Service Tax and sought clarification from the Board. These points are summarized as under: CCE, COIMBATORE Whether there will be visits to the premises of the stock brokers by the Internal audit / C AG for conducting Audit for their account. CCE, CALCUTTA -I What should be the date which commission/brokerage gets charged at the time of entering into the contract; or the time of raising bills? CCE, KANPUR CCE, Kanpur has raised the issue of service tax on disputed transaction. This happens when clients may withdraw from the transactions and may refuse to pay the payment for the shares purchased by the stockbrokers. This is linked with the basic concept as at what stage service tax has to be collected. You are requested to furnish your comments/view on the above points to the Board urgently.