Benefit of exemption limit - sub broker , Service Tax

[sunil v mehta]

Dear Sir, Under a direct billing system of BSE/NSE main broker raises bill (incld.ser.tax) on buyer/seller of securities.The sub-broker gets share of comm./incentive at the mth. end for business done through subbroker.Sub broker does not have any brand name.Subbroker is also regd. with sebi.He buys/sells shares by keying on his 'terminal'under main broker's code.The buyer/seller of shares settles his a/c and draws chq.directly on main broker. Case 1)Whether sub-broker can enjoy threshold limit of 4 lacs? Case 2)If main broker has 'brand name like 'Anagram'/'Sharekhan' etc whether subbroker working under him (as stated above)is eligible to enjoy 4 lacs exemption? If subbroker does not enjoy exemption ,pl. explain with reasons.s.mehta

Posts / Replies

[Surender]

Merely using the code of main broker does not mean using brand name of others. The main factor to decide the exemption is trade / brand name.