Amendment of section 66F
108. In section 66F of the 1994 Act.) in sub-section (1), the following Illustration shall be inserted, namely:-
‘Illustration
The services by the Reserve Bank of India, being the main service within the meaning of clause (b) of section 66D, does not include any agency service provided or agreed to be provided by any bank to the Reserve Bank of India. Such agency service, being input service, used by the Reserve Bank of India for providing the main service, for which the consideration by way of fee or commission or any other amount is received by the agent bank, does not get excluded from the levy of service tax by virtue of inclusion of the main service in clause (b) of the negative list in section 66D and hence, such service is leviable to service tax.’.
Notes on Clauses:
Clause 108 of the Bill seeks to insert an illustration in subsection (1) of section 66F of 1994 Act, so as to clarify the scope of that sub-section by means of an illustration.
