No Service Tax required to be paid on Services provided by an Authorised Person or Sub-Brokers to Member of Commodity Exchange up to 30th June, 2012

[Bimal jain]

Dear Professional Colleague,

No Service Tax required to be paid on Services provided by an Authorised Person or Sub-Brokers to Member of Commodity Exchange up to 30^th June, 2012

The Central Government vide Notification 03/2014-ST dated February 3, 2014 has provided that no Service Tax is required to be paid on services provided by an authorised person or sub-brokers to the member of a Commodity Exchange, in relation to a forward contract, on which Service Tax was not being levied during the period commencing from the 10^th day of September 2004 and ending with the 30^th day of June, 2012 in accordance with the prevalent practice.

In exercise of the powers conferred by section 11C of the Central Excise Act, 1944 (1 of 1944), read with section 83 of the Finance Act, 1994 (“the Finance Act”) the Central Government has directed that the service tax payable on the services provided by an authorised person or sub-broker to the member of a recognised association or a registered association, in relation to a forward contract, shall not be required to be paid in respect of such taxable service on which the service tax was not being levied during the period commencing from the 10^th day of September 2004 and ending with the 30^th day of June 2012 in accordance with the prevalent practice.

The Central Government is satisfied that a practice was generally prevalent regarding levy of service tax (including non-levy thereof), under section 66 of the Finance Act, on services provided by an authorised person or sub-broker to the member of a recognised association or a registered association, in relation to a forward contract, and that such services were liable to service tax under the Finance Act, which was not being levied according to the said practice during the period commencing from the 10^th day of September 2004 and ending with the 30^th day of June 2012.

Please find the link to download the Notification:

Notification 03/2014-ST dated February 3, 2014

Hope the information will assist you in your Professional endeavours. In case of any query/ information, please do not hesitate to write back to us.

Thanks & Best Regards
 
Bimal Jain
FCA, FCS, LLB, B.Com (Hons)

F-30/31/32, Pankaj Grand Plaza

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Delhi – 110091 India

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