Banking and other financial services: service tax covers specified financial activities, with limited exclusions for commission free money changing.

Service tax applies to services by banking companies, financial institutions (including NBFCs), other corporates and commercial concerns relating to banking and other financial services, comprising specified activities like leasing, merchant banking, forex broking, asset and fund management, advisory services, information and data processing, banker to an issue functions, lending and payment/guarantee facilities. Circular guidance clarifies that moneychangers transacting without separate commission are not foreign exchange broking, mutual fund entry/exit loads are not asset management consideration, depository electronic access services are taxable, and business chit fund promoters charging commission supply taxable cash management services.

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