Query on chargeablility of service tax to banking companies

Dear Mr. Vinay,

Kindly describe the nature of service provided by your client. because if it is providing loan recovery agent service , the liability is shifted to banking company under reverse charge mechanism.

In such cases he neednot bill with service tax to banks. whereas if it is anyother service then your client suppose to collect service tax unless specific any other exemptions provided in the law for such services subjected to basic exemption limit of service tax.

To see that you please go through Negative list of services and refer Notification No 25/2012 ST