Service tax in case of money changers

As per service tax circular No 92/2007,

1. Service tax is leviable on foreign exchange (forex) broking service under the category of ‘banking and other financial service’. In terms of the provisions of the Finance Act, 1994, foreign exchange broker includes a money changer (authorized dealer of foreign exchange). In this context, a question has arisen as to whether the service provided by a money changer in relation to exchange of foreign currency is a forex broking service for applicability of service tax levy under ‘banking and other financial services’.
    
2. The issue has been examined by the Board. It was noted that ‘money changing’ and ‘foreign exchange broking’ are two distinct activities. Money changing is an activity of sale and purchase of foreign exchange at the prevalent market rates. On the other hand, foreign exchange broking is the activity performed as an intermediary, on a commission/brokerage basis, for facilitating the clients who wish to buy or sell foreign exchange. The foreign exchange broker providing foreign exchange broking service does not hold title to the foreign exchange. Accordingly, Board is of the view that service tax is not leviable on money changing per se, as such activity does not fall under the category of foreign exchange broking.
   
    

pls help me

Dear All,

I just want to confirmt that the service tax  rate levy on foreign enchasee .

service tax:-

education cess

senior education cess

pls help

Mukund,

I am also facing the same problem...but  i have read from one of the article that service tax is applicable on margin also..

please note my ID - ankitgangwal @ gmail.com for other details u have regardng that