Government exempts the services provided by a business facilitator or a business correspondent to a banking company with respect to Basic Savings Bank Deposit Accounts covered by Pradhan Mantri Jan Dhan Yojana (PMJDY) from Service Tax.

In order to promote financial inclusion, the Government has exempted services provided by a business facilitator or a business correspondent to a banking company with respect to Basic Savings Bank Deposit Accounts covered by Pradhan Mantri Jan Dhan Yojana (PMJDY) by way of account opening, cash deposits, cash withdrawals, obtaining e-life certificates and Aadhar seeding, in the rural area branches of banking companies, from Service Tax. The services provided by any person as an intermediary to a business facilitator or a business correspondent with respect to the above mentioned services, have also been exempted from Service Tax.

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)

NOTIFICATION No. 20/2015-Service Tax

New Delhi, the Dated- 21st October, 2015

G.S.R.… 799(E).- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 25/2012-Service Tax, dated the 20th June, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 467 (E), dated the 20th June, 2012, namely:-

1. In the said notification,-

(i) in the opening paragraph, in entry 29, for clause (g), the following clauses shall be substituted, namely-

“(g) business facilitator or a business correspondent to a banking company with respect to a Basic Savings Bank Deposit Account covered by Pradhan Mantri Jan Dhan Yojana in the banking company’s rural area branch, by way of account opening, cash deposits, cash withdrawals, obtaining e-life certificate, Aadhar seeding;

(ga) any person as an intermediary to a business facilitator or a business correspondent with respect to services mentioned in clause (g);

(gb) business facilitator or a business correspondent to an insurance company in a rural area; or”

 (ii) in paragraph 2,-

(a)    after clause (g), the following clause shall be inserted, namely :-

“(ga) Basic Savings Bank Deposit Account means a Basic Savings Bank Deposit Account opened under the guidelines issued by Reserve Bank of India relating thereto;”

(b) in clause (k), in sub-clause (ii), for the words “religion or spirituality”, the words “religion, spirituality or yoga” shall be substituted.

[F. No. 354/101/2015 -TRU]

(Santosh Kumar Mishra)
Under Secretary to the Government of India

Note:- The principal notification was published in the Gazette of India, Extraordinary, by notification No. 25/2012 – Service Tax, dated the 20th June, 2012, vide number G.S.R. 467 (E), dated the 20th June, 2012 and last amended vide notification No. 12/2015 – Service Tax, dated the 30th April, 2015 vide number G.S.R. 348(E), dated the 30th April, 2015.

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Posted Under

Category : Service Tax (3371)
Type : Notifications (15857) Notifications/Circulars (32016)

3 responses to “Amendment in Negative List of Service Tax”

  1. Madan Arya says:

    I am Distributor of Eco India Finance Services and collect money from Customers Service Provided Agent after i deposit in our Bank Accounts and RTGS to Eco india Co please tell me that i liable Services tax is or not

  2. Kavita says:

    Can Aotumobiles dealers take input on service tax paid on car washing and servicing bills provided by another workshop dealer..?

  3. vishal says:

    Dear sir just i asking you, what is the rules of S.Tax in out off country

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