<h1>2007 Circular Exempts Money Changers from Service Tax; Reversal Sparks Compensation Concerns for Past Misapplications.</h1> Service tax on foreign exchange broking services, categorized under 'banking and other financial services' as per the Finance Act, 1994, initially included money changers. A 2005 clarification stated that money changers were liable for service tax. However, a 2007 circular corrected this, stating that money changing does not qualify as foreign exchange broking and is not subject to service tax. This reversal raises concerns about compensation for those adversely affected by the earlier erroneous interpretation.