From 01.07.2012 Service tax regime has been shifted from positive list to negative list and therefore service tax is applicable on all services except services covered under under negative list or exemption list.
Here is the case of services provided by Indian bank or other entity as an agent to money transfer service service operators (MSTO) in relation to remittance of foreign currency from outside India to India,Where service tax has not been charged by the Banks.
CBEC has clarified vide its Circular No. 180/06/2014-ST dated 14th October, 2014 that such service are taxable wef 01.07.2012.
After clarification ,related person have started charging the service tax ,but what about the period 01.07.2012 to 13.10.2012.Now CBEC has issued a notification vide which exemption has been given to such person on such services for above said period .Notification is reproduced as under.
Department of Revenue Central Board of Excise and Customs
Notification No. 19/2015-Service Tax
New Delhi, the 14th October, 2015 22 Asvina 1937 Saka
G.S.R. (E).- Whereas, the Central Government is satisfied that in the period commencing on and from the 1st day of July, 2012 and ending with the 13th day of October, 2014 (hereinafter referred to as the said period) according to a practice that was generally prevalent, there was non levy of service tax on the services provided by an Indian Bank or other entity acting as an agent to the Money Transfer Service Operators (hereinafter referred to as MTSO), in relation to remittance of foreign currency from outside India to India (hereinafter referred to as the said practice), and this service was liable to service tax, which was not being paid according to the said practice. Now, therefore, in exercise of the powers conferred by section 11C of the Central Excise Act, 1944 (1 of 1944) as made applicable to like matters in Service Tax vide section 83 of the Finance Act, 1994 (32 of 1994), the Central Government hereby directs that the service tax payable under section 66B of the Finance Act, 1994, on the service provided by an Indian Bank or other entity acting as an agent to the MTSO in relation to remittance of foreign currency from outside India to India, in the said period, but for the said practice, shall not be required to be paid.
Under Secretary to the Government of India
[F.No. 137/51/2014-Service Tax]