TaxTMI 
TaxTMI 
2009 (7) TMI 579
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....f telephone bills by the respondent bank for Bharat Sanchar Nigam Limited (BSNL), Airtel and other companies is not business auxiliary service attracting liability for service tax falling under section 65(19) of the Finance Act 1994? The Finance Act, 1994 was amended by section 90 of the Finance (No. 2) Act, 2004 introducing clauses (12) and (19) in section 65 of the Finance Act, 1994. While clause (12) of section 65 defines banking and other financial services which specifically excludes service pertaining to cash management, clause (19) defines business auxiliary services which includes in it any customer care service provided on behalf of the client including service incidental or auxiliary to any activity specified in sub-clauses (i) to....
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....s of the respondent, like BSNL, Airtel, etc. maintain accounts with one or two branches of the bank with Hub Account. Customers in receipt of telephone bills are free to deposit the bill amount in any branch of the respondent bank which will collect the payment and credit in the Hub Account maintained by their client company. In fact the bank is issuing receipt to the subscribers of telephone against bill amount paid by them to the bank. For the service rendered the bank is said to be collecting a specified rate of commission of Rs. 5.50 per every bill. It is this amount which is subject to service tax. Even though the finding of the Tribunal that the service rendered by the bank is not a business auxiliary service, does not appear to be co....
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.... by a body corporate; (ii) credit card services; (iii) merchant banking services; (iv) securities and foreign exchange (forex) broking; (v) asset management including portfolio management, all forms of fund management, pension fund management, custodial depository and trust services, but does not include cash management; (iv) advisory and other auxiliary financial services including investment and portfolio research and advice, advice on mergers and acquisitions and advice on corporate restructuring and strategy; (vi) provision and transfer of information and date processing; and (vii) other financial services, namely, lending; issue of pay order, demand draft, cheque, letter of credit and bill of exchange; providing bank guarantee, ....