CHAPTER V
SERVICE TAX
Amendment of section 65B.
105. In the Finance Act, 1994 (32 of 1994.) (hereinafter referred to as the1994 Act), save as otherwise provided, in section 65B,-
(a) clause (9) shall be omitted with effect from such date as the Central Government may, by notification in the Official Gazette, appoint;
(b) after clause (23), the following clause shall be inserted, namely:-
‘(23A) “foreman of chit fund” shall have the same meaning as is assigned to the term “foreman” in clause (j) of section 2 of the Chit Funds Act, 1982;’(40 of 1982.);
(c) clause (24) shall be omitted with effect from such date as the Central Government may, by notification in the Official Gazette, appoint; .
(d) after clause (26), the following clause shall be inserted, namely:-
‘(26A) “Government” means the Departments of the Central Government, a State Government and its Departments and a Union territory and its Departments, but shall not include any entity, whether created by a statute or otherwise, the accounts of which are not required to be kept in accordance with article 150 of the Constitution or the rules made thereunder;’;
(e) after clause (31), the following clause shall be inserted, namely:-
‘(31A) “lottery distributor or selling agent” means a person appointed or authorised by a State for the purposes of promoting, marketing, selling or facilitating in organising lottery of any kind, in any manner, organised by such State in accordance with the provisions of the Lotteries (Regulation) Act, 1998’; (17 of 1998.)
(f) in clause (40), the words “alcoholic liquors for human consumption,” shall be omitted with effect from such date as the Central Government may, by notification in the Official Gazette, appoint;
(g) in clause (44), for Explanation 2, the following Explanation shall be substituted, namely:-
‘Explanation 2. - For the purposes of this clause, the expression “transaction in money or actionable claim” shall not include--
(i) any activity relating to use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged;
(ii) any activity carried out, for a consideration, in relation to, or for facilitation of, a transaction in money or actionable claim, including the activity carried out--
(a) by a lottery distributor or selling agent in relation to promotion, marketing, organising, selling of lottery or facilitating in organising lottery of any kind, in any other manner;
(b) by a foreman of chit fund for conducting or organising a chit in any manner.’;
(h) clause (49) shall be omitted with effect from such date as the Central Government may, by notification in the Official Gazette, appoint.
Notes on Clauses:
Clause 105 of the Bill seeks to amend section 65B of 1994 Act so as to insert certain clauses, modify or clarify the scope of certain definitions and
(a) to omit clauses (9), (24), and (49);
(b) to omit certain words in clause (40), with effect from such date as the Central Government may, by notification, appoint.
