General Trading Chat

[rahulmalik]

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

But the mystery remains if they deposit the service tax to government, or they just keep it as a bonus for themselves

 

[iwillwin]

What is the point if brokerage and amount credited are same.... In above case 55000 won plus 30k refund.... 75k paid to broker
Also I don't understand prepaid brokerage schemes that offer discount in brokerage

 

[kaalchakrasamay]

What is the point if brokerage and amount credited are same.... In above case 55000 won plus 30k refund.... 75k paid to broker
Also I don't understand prepaid brokerage schemes that offer discount in brokerage

you mean prepaid brokerage for unlimited trading OR something else.

 

[Smart_trade]

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

A service Tax is to be paid to the Govt even if the brokerage is refunded....so service tax will not be refunded.

Smart_trade

 

[rahulmalik]

A service Tax is to be paid to the Govt even if the brokerage is refunded....so service tax will not be refunded.

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

 

[DSM]

TP,

These nos don't mean anything in my view. These can be changed in opposite direction before the blink of an eye....

Unusually high number of buyers in BNF.

 

[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

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

 

[vishnu_1990v]

ST da,
Pls reply on this flag breakout .

vishnu_1990v

 

[rahulmalik]

Refresh this page at 11 AM

https://www.rbi.org.in/scripts/Annualpolicy.aspx

Although it looks like non even this time. :thumb:

Live telecast, starting at 1110 hours

https://www.youtube.com/watch?v=TMDoxDhSPbs&feature=youtu.be

 

[praveen taneja]

:annoyed:7:annoyed:7:annoyed:7:annoyed:7 de de baba
Jai Ram JI KI