fund management services

Labour Ministry opposed the move to bring EPFO activities under service tax net

The finance and labour ministries have locked horns over the issue of bringing retirement fund manager EPFO under the service tax net. The Central Board of Excise and Customs has slapped a notice for recovery of service tax on Employees’ Provident Fund Organisation (EPFO) but the Labour Ministry has opposed it saying the organisation was not doing any commercial activity.
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CBEC slapped Rs. 1200 crore penalty notice on EPFO for evading service tax

It's not clear if dipping tax collections have anything to do with it, but the country's largest retirement fund just got a shocker from the revenue authorities. The Central Board of Excise & Customs has slapped a penalty notice on the Employees' Provident Fund Organisation (EPFO) for evading service tax, arguing that it provides employers fund management services. Fund management falls under the definition of banking & financial services, which are taxable.
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