Amendment in Sec. 66F (1), Service Tax

[Admin TMI]

Question - What are proposed amendment in Sec.66F (1) in Finance Bill 2015 ?

Posts / Replies

[Admin TMI]

Section 66F (1) prescribes that unless otherwise specified, reference to a service shall not include reference to any input service used for providing such services. An illustration is being incorporated in this section to exemplify the scope of this provision. As illustrated, reference to service provided by the Reserve Bank of India (RBI), in section 66D (b) does not include any agency service provided by other banks to RBI, as such agency services are input services used by RBI for provision of its main service. Accordingly, banks providing agency service to or in relation to services of RBI, are liable to pay Service Tax on the agency services so provided by virtue of the existing Section 66F (1).