TaxTMI 
TaxTMI 
Banking or Financial institution
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....g and other financial services; Meaning of Banking - 65(10) "banking" has the meaning assigned to it in clause (b) of section 5 the Banking Regulation Act, 1949; As per clause (b) of section 5 of the Banking Regulation Act, 1949; "Banking means the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdrawable by cheque, draft, order or otherwise." Meaning of Banking Company - 65(11) "banking company" has the meaning assigned to it in clause(a) of section 45A of the Reserve Bank of India Act, 1934; As per clause (a) of section 45A of the Reserve Bank of India Act, 1934; " Banking company means a banking company as defined in section 5 of the Banking R....
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....et management including portfolio management, all forms of fund management, pension fund management, custodial, depository and trust services; (vi) 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; (vii) provision and transfer of information and data processing; and (viii) banker to an issue services; and (ix) other financial services, namely, lending; issue of pay order, demand draft, cheque, letter of credit and bill of exchange, transfer of money including telegraphic transfer, mail transfer and electronic transfer, providing bank guarantee, over draft facility, bill discounting facility, sa....
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....of the Reserve Bank of India Act, 1934; As per clause (f) of section 45-I of the Reserve Bank of India Act, 1934; "Non-banking financial company means- (i) a financial institution which is a company; (ii) a non-banking institution which is a company and which has as its principal business the receiving of deposits, under any scheme or arrangement or in any other manner, or lending in any manner; (iii) such other non-banking institution or class of such institutions, as the Bank may, with the previous approval of the Central Government and by notification in the Official Gazette, specify." Meaning of Financial Institution - 65(45) "financial institution" has the meaning assigned to it in clause (c) of section 45-I of the Reserve ....
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....ial activity. Explanation:- For the purpose of this clause, "industrial activity" means any activity specified in sub-clauses (i) to (xviii) of clause (c) of section 2 of the Industrial Development Bank of India Act, 1964, the following activities have been specified as industrial activity: (b) the purchase or sale of any goods (other than securities) or the providing of any services; or (c) the purchase, construction or sale of immovable property, so, however, that no portion of the income of the institution is derived from the financing of purchases construction or sales of immovable property by other persons." ********************** A. As per Paragraph No 6. of Circular No. 96/7/2007 dated 23/8/2007 states that :- "6. This circu....
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....o buy and sell foreign exchange at the prevalent market rates. Buying or selling of foreign exchange by such persons without separately charging any amount as commission or brokerage does not fall within the scope of foreign exchange broking and is not liable to service tax under section 65(105)(zm). Issue - 034.02 / 23.08.07 'Asset management and all other forms of fund management' are liable to service tax under 'banking and other financial service' [section 65(12)]. Whether the amount charged as 'entry and exit load' from the investor by a mutual fund is liable to service tax as asset / fund management services under banking and other financial services [section 65(105)(zm)]? Clarification Entry load and exit load charged by a mutua....
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...."banking and other financial services" [section 65(105)(zm) and section 65(12)]. The said taxable service also includes cash management services provided. Services are provided in relation to chit funds. Chit Funds are of two types, namely:- (a) Simple Chit Funds: In this case, members agree to contribute to the fund a certain amount at regular interval. Lots are drawn periodically and the member, whose name appears, gets the periodical collection. No separate amount is charged from the members. (b) Business Chit Funds: In this case, there is a promoter known as foreman who draws up the terms and conditions of the scheme and enrolls subscribers. Every subscriber has to pay his subscription in regular installments. The foreman charges a s....