Service tax on transaction chgs
This query is : Resolved
24 December 2013
IS THERE SERVICE TAX APPLICABLE ON TRANSACTION CHARGES OF A STOCK BROKER BILL
24 July 2025
Hi! Regarding your query on **service tax on transaction charges of a stock broker**:
* **Yes, service tax is applicable on transaction charges levied by a stock broker.**
* Transaction charges are considered part of the **"Stock Broker’s Service"**, which is taxable under service tax law.
### Key points:
* The stock broker charges service tax on the brokerage/transaction charges collected from clients.
* The rate of service tax on stock broking services (as per pre-GST regime) was 14% plus applicable cesses (total around 14.5% or 15%).
* The service tax is usually included in the bill/statement sent to the client by the broker.
* If you are a client receiving such bill, you don’t pay service tax separately; it is included in the brokerage invoice.
---
If you want I can help with more detailed examples or legal references. Would you like that?
* **Yes, service tax is applicable on transaction charges levied by a stock broker.**
* Transaction charges are considered part of the **"Stock Broker’s Service"**, which is taxable under service tax law.
### Key points:
* The stock broker charges service tax on the brokerage/transaction charges collected from clients.
* The rate of service tax on stock broking services (as per pre-GST regime) was 14% plus applicable cesses (total around 14.5% or 15%).
* The service tax is usually included in the bill/statement sent to the client by the broker.
* If you are a client receiving such bill, you don’t pay service tax separately; it is included in the brokerage invoice.
---
If you want I can help with more detailed examples or legal references. Would you like that?
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