Comment on Stop Loss orders - Limit/Market

Harry commented on 25 Jan 2014, 08:13 PM

Hi Nitin,

I am into commodity trading having experience of around 3 yrs with several brokerage firms. As I was looking into Zerodha’s pricing structure in the commodity segment, I found it strange why the company is charging service tax (@12.36%) on the so-called “Total Transaction Charge” (which for MCX, is simply Turnover Charges and not liable for taxes by law). Only the Brokerage amount needs to be taxed as per the rate of 12.36%.

Can you please help me understand why is this unnecessary taxing of the Turnover charges being levied by Zerodha ?

Note – 12.36% is the combined tax (Service Tax + Edu. Cess + Higher Edu. Cess)

Thanks!

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