Money changers providing service in relation to foreign exchange covered under banking and financial services

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..... money changers to pay service tax under banking other financial service - regarding. Please refer to your letter DOF NO V/DGST/21(9) Banking Service /2/2003 dated 8/9/2005 on the above subject. 2. On perusal of the statutory provisions regarding taxation of services provided in relation to foreign exchange broking it is seen that: Authorized dealers of foreign exchange are defined wider .....

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..... ers under Section 2(c) of FEMA are foreign exchange brokers as inferred above the therefore any service provided by such money changers would amount to foreign exchange broking. Money changers are licensed by the Reserve Bank of India in terms of Section 10(1) of FEMA, 1999. 5. The following points which govern the relationship between RBl and the money changers are relevant: Money changers .....

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..... change broker including banking company, financial institution, non banking finance company any body corporate, or commercial concern. Statutory provisions are the same in respect of all these entities which are engaged in the same activity. Money changers cannot go out of the purview of service tax on the plea that they are merely selling and purchasing foreign currency and not dealing or brokeri .....

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