Press Information Bureau

Government of India

Ministry of Finance

22-October-2015 15:08 IST

In order to promote financial inclusion, the Government has exempted services provided by a business facilitator or a business correspondent to a banking company with respect to Basic Savings Bank Deposit Accounts covered by Pradhan Mantri Jan Dhan Yojana (PMJDY) by way of account opening, cash deposits, cash withdrawals, obtaining e-life certificates and Aadhar seeding, in the rural area branches of banking companies, from Service Tax. The services provided by any person as an intermediary to a business facilitator or a business correspondent with respect to the above mentioned services, have also been exempted from Service Tax.

A notification to this effect was issued yesterday by the Government.

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DSM

Service tax exemption for PMJDY account services excludes business facilitator and correspondent account opening, deposits, withdrawals and Aadhaar seeding. Service tax exemption applies to services by a business facilitator or business correspondent to a banking company for Basic Savings Bank Deposit Accounts under the Pradhan Mantri Jan Dhan Yojana in rural branches, covering account opening, cash deposits, cash withdrawals, e-life certificates and Aadhaar seeding; intermediary services to such facilitators or correspondents are likewise exempt.