Whether Finance Companies providing banking and Financial services and having proprietary/partnership status are liable to service tax?
Ans:- The Banking and Financial services provided by a banking company or a financial institution including a non banking financial company or any other body corporate is chargeable to service tax. The term body corporate means a private limited public limited company or a government company. Such companies should be either a banking company or a financial institution or non banking financial company to come under the tax net. In other words individuals proprietorship or partnership firms will not come under the tax net.
