Share brokers provide services for purchase and sale of shares for their clients. These services are charged under GST. Rate of GST is 18% on brokerage. You can find the SAC for brokerage services.
Note :- For the safety of the investors, there are other nominal charges besides GST on brokerage. These are Security Transaction Tax (STT), SEBI charge, stamp duty etc. Here we will only consider GST on brokerage.
Ex. Bashirkhan purchased 100 shares of MV Rs. 40. Brokerage paid at the rate of 0.5% and rate of GST on brokerage is 18%. Find the total amount he paid for the share purchase.
Solution : Value of 100 shares = 40 × 100 = Rs. 4000.
Brokerage per share =`0.5/100xx40=Rs. 0.20`
∴ Cost of one share = MV + Brokerage
= 40 + 0.20 =Rs. 40.20.
∴ Cost of 100 shares = 40.20 × 100 = Rs. 4020
∴Brokerage on 100 share = 0.20 × 100 = Rs. 20
∴ GST =`18/100xx20`
Ans. : Bashirkhan paid Rs. 4020 + Rs. 3.60 = Rs. 4023.60 for 100 shares.
Write the correct alternative for the following questions.
To find the cost of one share at the time of buying the amount of Brokerage and GST is to be ... the MV of share .
Smt. Anagha Doshi purchased 22 shares of FV Rs 100 for Market Value of Rs 660. Find the sum invested. After taking 20% dividend, she sold all the shares when market value was Rs 650. She paid 0.1% brokerage for each trading done. Find the percent of profit or loss in the share trading.
(Write your answer to the nearest integer).