General Trading Chat
- Thread starter timepass
- Start date
- Tags idle thoughts trading talk only
no service tax refund.
one trader won 55000 , brokerage generated 105,000 , service tax paid 15000. zerodha returned only 30000 (max return new rules)
http://www.traderji.com/brokers-trading-platforms/89121-zerodha-part-3-a-1157.html#post1113883
one trader won 55000 , brokerage generated 105,000 , service tax paid 15000. zerodha returned only 30000 (max return new rules)
http://www.traderji.com/brokers-trading-platforms/89121-zerodha-part-3-a-1157.html#post1113883
Smart_trade
ST ji, just for my knowledge - I believe this is subjective to, how they show this in their account books. If they are showing as discount in brokerage, the service tax may be applicable only on the brokerage paid.
For ex - brokerage charges - Rs 1000 . refunded - Rs 500.
They can show actual brokerage charged of Rs 500 , instead of showing 2 transactions above and submit the service tax to govt as per Rs 500 only, irrespective of the tax collected for Rs 1000 from client.
Alternatively, they can also pay entire service tax to govt - as u said, and show the refunds as incentives.
Not sure if there are exclusively laid down rules for such accounting for brokerage houses.
Also from the recent changes, they have recently reduced the refund amount to Rs 30000 , which is coincidentally also the slab limit to deduct TDS in case of incentive paid. So most likely they are showing as incentive payout
For ex - brokerage charges - Rs 1000 . refunded - Rs 500.
They can show actual brokerage charged of Rs 500 , instead of showing 2 transactions above and submit the service tax to govt as per Rs 500 only, irrespective of the tax collected for Rs 1000 from client.
Alternatively, they can also pay entire service tax to govt - as u said, and show the refunds as incentives.
Not sure if there are exclusively laid down rules for such accounting for brokerage houses.
Also from the recent changes, they have recently reduced the refund amount to Rs 30000 , which is coincidentally also the slab limit to deduct TDS in case of incentive paid. So most likely they are showing as incentive payout
The Service Tax is chargeable the moment a service is rendered ( though it is payable later ). The brokerage shown on trade day and the service tax becomes payable. Reducing the brokerage later means changing records which the Govt will not take very kindly. Brokerage refunded or not does not change the service rendered and in my view Service Tax is to be paid.....and Service Tax is collected by Central Excise and Zerodha would not like to get into litigation with this department .
Smart_trade
Smart_trade
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