https://www.taxtmi.com/article/detailed?id=638 An agent's obligations ordinarily do not exceed those of its principal; where the RBI performs sovereign or statutorily exempt functions and thus would not be liable to service tax, a bank acting as its agent ordinarily should not be liable for that tax unless statute, contract, or undisclosed-principal treatment provides otherwise. Consequently, imposition of service tax on banks for activities performed on behalf of the RBI and its government clients is generally inconsistent with the principal-agent rule, and tribunals may grant stay and waive pre-deposit where a strong prima facie case of exemption exists. en-us Tue, 12 Jan 2010 00:00:00 +0530 Tue, 12 Jan 2010 06:15:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=638 An agent's obligations ordinarily do not exceed those of its principal; where the RBI performs sovereign or statutorily exempt functions and thus would not be liable to service tax, a bank acting as its agent ordinarily should not be liable for that tax unless statute, contract, or undisclosed-principal treatment provides otherwise. Consequently, imposition of service tax on banks for activities performed on behalf of the RBI and its government clients is generally inconsistent with the principal-agent rule, and tribunals may grant stay and waive pre-deposit where a strong prima facie case of exemption exists. Articles Service Tax Tue, 12 Jan 2010 00:00:00 +0530 https://www.taxtmi.com/article/detailed?id=638