Taxability of stamping and franking w.e.f 01.07.2012

This query is : Resolved

CA virag shah (Querist)
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18 August 2012 Hi,

As per new amended provisions all services except which are in neg. list are taxable.

So what will be the impact of such amendment when a bank is providing facility of franking to its customers.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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18 August 2012 Accoriding to me, it is actionable claim as it creates a ‘beneficial interest’ in a moveable property. Accordingly, not liable for service tax.

RENGARAJ R.K

RENGARAJ R.K (Expert)
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18 August 2012 There is no special mention about such services in the "banking and financial services" in the negative list and hence, in my opinion, such franking services will be in the tax net.

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Guest

Guest (Expert)

18 August 2012 Since such service is not enumerated in the negative list, hence it is liable to Service Tax.