CBEC clarifies on service tax

The Revenue Department today said service tax will not be levied on sub-brokers providing services to member of a commodity exchange during September, 2004 and June, 2012.
"No service tax required to be paid on services provided by an authorised person or sub-broker to the member of a commodity exchange (in relation to a forward contract), in respect of such taxable service on which the service tax was not being levied during the period commencing September 10, 2004 and ending June 30, 2012," it said.
A circular in this regard has been issued by the Central Board of Excise and Customs (CBEC).

Though service tax was applicable on such services during the period mentione above, it was not levied.
The clarification is in "accordance with the prevalent practice" during the period, the Ministry added.
Service tax is levied at the rate of 12 per cent.