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Issue of equity shares at premium whether exempted service? (whether this activity is 'trading in securities')

Service Tax - Started By: - Yatin Bhopi - Dated:- 1-12-2015 Last Replied Date:- 9-12-2015 - Dear exeprtsWe are manufacturer and public limited company. recently we have gone through excise audit.We have securities premium account where premium received on issue of equity share is credited. i.e. for eg. if the face value of shares is ₹ 10 and if we issue to shareholder at ₹ 15, ₹ 5 is the premium received and credited to securities premium account.Now auditors view is that, this .....

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of reversing any cenvat credit taken. - Reply By Ganeshan Kalyani - The Reply = By issuing shares you have not provided any service. in fact it is trading I.e. buying and selling of shares where no service tax is involved by any means. Hence no question of reversing the input credit. - Reply By MARIAPPAN GOVINDARAJAN - The Reply = The trading of securities is an exempted service. The company is a manufacturer. In such a situation the company has to maintain separate accounts for exempted service .....

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