Applicant is liable to pay GST on the delayed payment of charges which are overdue from the client towards trading of securities and reimbursed to them.
Authority for Advance Ruling — Trading of Securities – The Applicant is engaged in the business of providing services of stock broking i.e. purchasing and selling of shares on behalf of the clients on exchange platform by virtue of being a recognized BSE/NSE appointed Stock Broker. The Applicant sought an Advance Ruling regarding taxability on delayed payment charges on reimbursement of amount by client to Applicant, where client failed to pay amount paid to Stock Exchanges for purchase of securities with T+1 (Trading day plus one day) under SEBI regulation norms and deducted by Stock Exchange from Applicant’s account being purchase consideration of securities which are neither goods nor services under GST.
Held that:- The Hon’ble Authority for Advance Ruling ruled that Applicant is liable to pay GST on the delayed payment of charges which are overdue from the client towards trading of securities and reimbursed to them.
Applicant is liable to pay GST on the delayed payment of charges which are overdue from the client towards trading of securities and reimbursed to them.
Authority for Advance Ruling — Trading of Securities – The Applicant is engaged in the business of providing services of stock broking i.e. purchasing and selling of shares on behalf of the clients on exchange platform by virtue of being a recognized BSE/NSE appointed Stock Broker. The Applicant sought an Advance Ruling regarding taxability on delayed payment charges on reimbursement of amount by client to Applicant, where client failed to pay amount paid to Stock Exchanges for purchase of securities with T+1 (Trading day plus one day) under SEBI regulation norms and deducted by Stock Exchange from Applicant’s account being purchase consideration of securities which are neither goods nor services under GST.
Held that:- The Hon’ble Authority for Advance Ruling ruled that Applicant is liable to pay GST on the delayed payment of charges which are overdue from the client towards trading of securities and reimbursed to them.