Banking and other Financial Services were brought under the scope of Service Tax net from 16.07.2001.Also with major changes in mega exemption notification, abatement notification and reverse charge notification service tax compliances increased manifold. The banking system is also highly regulated considering its importance within the financial system in channelizing resources and helping in economic growth.
Considering that no significant material was available for providing guidance to the members to check the compliance of service tax in banking sector, we are extremely happy to note that the Indirect Taxes Committee had published this material titled “Compliances of service tax in Banking Sector” in the year 2014. The publication is assisting members to verify the service tax compliance by Banks specially while doing the Bank Branch/Central Statutory and Concurrent Audit. The committee has updated the publication last year incorporating the changes made by the Finance Act, 2015. The publication is now being revised with the changes proposed by the Finance Bill, 2016 adverted with a limited applicability of provisions of the bill in March 2016.