Chit Funds — Service rendered does not fall under "banking and other financial services" — Not taxable under Service Tax

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..... e been raised as to whether the services rendered by a chit fund is classifiable in the category of taxable service under "banking and other financial services". As per section 65(10) of the Finance Act, 1994, "banking and other financial services" includes asset management including portfolio management, all forms of fund management, pension fund management, custodial depository and trust service .....

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..... ce Act, 1994. 3. In view of facts mentioned above, it is clarified that "banking and other financial services" will not include the service rendered by chit funds. Accordingly, the service rendered by chit funds will not fall in the category of taxable service as defined in section 65(72)(zm) of the Finance Act, 1994. 4. Trade and field formations may be informed accordingly. 5. Receipt of t .....

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