Service Tax – Exemption to Inter Banking Transactions

By Vijay Kumar

BY Notification No. 19/2009 dated 07.07.2009, service provided by one scheduled bank to another scheduled bank in relation to interbank transactions of purchase and sale of foreign currency, was exempted. Now this exemption is available to any bank, including a bank located outside India, or money changer.

Notification No. 27/2011–Service Tax, Dated : March 31, 2011