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TMI BlogBanking or Financial institutionX X X X Extracts X X X X X X X X Extracts X X X X ..... ation to banking and other financial services; Meaning of Banking - 65(10) "banking" has the meaning assigned to it in clause (b) of section 5 the Banking Regulation Act, 1949; As per clause (b) of section 5 of the Banking Regulation Act, 1949; "Banking means the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdrawable by cheque, draft, order or otherwise." Meaning of Banking Company - 65(11) "banking company" has the meaning assigned to it in clause(a) of section 45A of the Reserve Bank of India Act, 1934; As per clause (a) of section 45A of the Reserve Bank of India Act, 1934; " Banking company means a banking c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (ii) ***[deleted] (iii) merchant banking services; (iv) securities and foreign exchange (forex) broking, and purchase or sale of foreign currency, including money changing; (v) asset management including portfolio management, all forms of fund management, pension fund management, custodial, depository and trust services; (vi) advisory and other auxiliary financial services including investment and portfolio research and advice, advice on mergers and acquisitions and advice on corporate restructuring and strategy; (vii) provision and transfer of information and data processing; and ( viii) banker to an issue services; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered under any law relating to co-operative societies; and (c) any other body corporate (not being a company as defined in this Act) which the Central Government may, by notification in the Official Gazette, specify in this behalf." Meaning of Non Banking Financial Company - 65(74) "non-banking financial company" has the meaning assigned to it in clause (f) of section 45-I of the Reserve Bank of India Act, 1934; As per clause (f) of section 45-I of the Reserve Bank of India Act, 1934; "Non-banking financial company means- (i) a financial institution which is a company; (ii) a non-banking institution which is a company and which has as its principal business the receiving of deposi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; (vi) collecting, for any purpose or under any scheme or arrangement by whatever name called, monies in lump-sump or otherwise, by way of subscription or by sale of units, or other instruments or in any other manner and awarding prizes or gifts, whether in cash or kind, or disbursing monies in any other way, to persons, from whom monies are collected or to any other person; but does not include any institution, which carries on as its principle business- (a) agricultural operations; or (aa) industrial activity. Explanation: - For the purpose of this clause, "industrial activity" means any activity specified in sub-clauses (i) to (xviii) of clause (c) of sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct, 1973 to deal in foreign currency. Explanation given under Section 7 of the said Act states that 'dealing' means purchasing foreign currency in the form of notes, coins or traveller's cheques or selling foreign currency in the form of notes, coins or traveller's cheques. Whether services provided by a money changer in relation to dealing of foreign currency (buying or selling), at specified rates, without separately charging any amount as commission for such dealing, is liable to service tax as foreign exchange broking under 'banking and other financial services' [section 65(105) (zm)]? Clarification Moneychangers are authorized by RBI to buy and sell foreign exchange at the prevalent market rates. Buying or selling of foreign ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of information and data processing". These services are not in the nature of "on-line information and data base access or retrieval services". Therefore, the depository services provided by CDSL including Electronic Access to Securities Information (EASI) for a fee are liable to service tax under Banking and other Financial Services. [section 65(105)(zm)] Issue - 034.04 / 23.08.07 Services provided by banking company or a financial institution including a non-banking financial company or any other body corporate or commercial concern in relation to asset management including portfolio management, and all forms of fund management, is leviable to service tax under "banking and other financial services" [section 65(105)(zm) and section 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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