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of <h1>Service Tax on Credit and Debit Card Services Effective May 1, 2006, Includes Banks and Financial Institutions</h1> The taxable services related to credit, debit, charge, or other payment cards effective from May 1, 2006. It specifies that any service provided in connection with these cards is taxable, and the service provider is liable for the service tax. Services include those offered by banks or financial institutions issuing cards, processing applications, generating PINs, and handling transactions. It also covers promotional activities, ATM usage, and agreements for trademark use. A circular issued on August 23, 2007, supersedes previous clarifications on technical issues related to service tax, including the scope and classification of taxable services.
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