Compliance of Service Tax in Banking Sector (ICAI’s Technical Guide)
Since introduction of Service Tax in 1994, every year the service tax network is widened by bringing new services under its ambit. Banking and other Financial Services were subjected to Service Tax from 16.07.2001. Finally, in 2012, all services were subjected to service tax except those specifically mentioned in the negative list.
With major amendments in provisions of Service Tax via mega exemption notification, abatement notification, reverse charge notification, etc. in 2012, the service tax compliance requirements have increased substantially.
Keeping in view the complications of compliance requirements, the ICAI started publishing it’s technical guide in 2014 to assist members. Now in view of amendments made / introduced by the Finance Bill, 2016, the Indirect Taxes Committee of ICAI has come out with it’s revised technical guide (2016 Edition) on “Compliance of Service Tax in Banking Sector”, to help members verify the latest requirements of service tax compliance in Banks specially while doing the Bank Branch / Central Statutory or Concurrent Audits.