Does the trading / clearing member need to have sales tax registration?
No. The member need not have a sales tax registration. However, if the member wants to undertake proprietary trading and take the delivery of the commodities, then he needs to have sales tax registration under the provisions of the relevant State sales tax law. Sales tax registration is to be obtained in the State where the delivery center for the commodity is located. How should the client/participant move the commodities into the designated warehouses? The client / participant are responsible to move the commodities from their warehouse into the warehouses designated by the Exchange. Such movement may be by way of stock transfers from place outside the State for which the client / participant will be responsible for issuance of certificate in Form F under the Central Sales Tax Act, 1956 to his dispatching branch. The client / participant will also be responsible for payment of octroi, entry tax, cess, etc. on entry of the goods into the local areas in the State where the designated w
Related Questions
- Will clearing firms have access to FINRA’s Central Registration Depository (CRD) database in order to retrieve the CRD numbers of their correspondent firms?
- I have received a letter from the Office of Fair Trading requesting further information about my registration; can I reply with the details on the Web site?
- Does the trading / clearing member need to have sales tax registration?
