GST on Stock Brokers services to non residents of India : CBIC Clarify

By | June 4, 2018
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(Last Updated On: June 4, 2018)

Stock Brokers deal with clients who  are not residents of India like  Foreign Portfolio Investors, Non Resident Indians, Persons of Indian Origin, etc. Will brokerage earned from such clients who are not resident in India qualify as “export of service” under section 2(6) of the IGST Act, 2017?

The stock broker being an intermediary, this situation shall be covered under  the provisions of section 13(8)(b) of the IGST Act, 2017 which provides that the place of supply shall be the location of the supplier of services. Thus such a supply will be treated as an intra-State supply and would be subject to Central tax and State tax / Union territory tax, as the case may be.

Q 85 of GST FAQs on Financial Services Sector published by CBIC

Direct Taxes Ready Reckoner
Service Tax Ready Reckoner
Company Law Ready Reckoner
tax deduction at source

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