Services by specific persons in their respective capacities under Mega exemption notification :
Services by the following persons in respective capacities are exempt from service tax –
(a) sub-broker or an authorized person to a stock broker;
(b) authorized person to a member of a commodity exchange;
(c) selling agent or a distributor of SIM cards or recharge coupon vouchers;
(d) business facilitator or a business correspondent to a banking company or an insurance company, in a rural area; or
(e) sub-contractor providing services by way of works contract to another contractor providing works contract services which are exempt.
| 1. Banking company means a banking company as defined in section 5 of the Banking Regulation Act, 1949, and includes the State Bank of India any subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959, any corresponding new bank constituted by section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, and any other financial institution notified by the Central Government in this behalf.
As per section 5 of the Banking Regulation Act, 1949, “banking company” means any company which transacts the business of banking in India. Explanation. — Any company which is engaged in the manufacture of goods or carries on any trade and which accepts deposits of money from the public merely for the purpose of financing its business as such manufacturer or trader shall not be deemed to transact the business of banking within the meaning of this clause. 2. Business facilitator or business correspondent means an intermediary appointed under the business facilitator model or the business correspondent model by a banking company or an insurance company under the guidelines issued by Reserve Bank of India. 3. Commodity exchange means an association an association to which recognition for the time being has been granted by the Central Government under section 6 of the Forward Contracts (Regulation) Act, 1952 in respect of goods or classes of goods specified in such recognition. 4. Insurance company means a company carrying on life insurance business or general insurance business. 5. Rural area means the area comprised in a village as defined in land revenue records, excluding- (a) the area under any municipal committee, municipal corporation, town area committee, cantonment board or notified area committee; or (b) any area that may be notified as an urban area by the Central Government or a State Government. 6. Sub-broker means any person not being a member of stock exchange who acts on behalf of a stock broker as an agent or otherwise for assisting the investors in buying, selling or dealing in securities through such stock brokers. 7. Authorised person means any person who is appointed as such either by a stock broker (including trading member) or by a member of a commodity exchange and who provides access to trading platform of a stock exchange or a commodity exchange as an agent of such stock broker or member of a commodity exchange. |