Facilitation for opening bank accounts exempted from cess

New Delhi, Oct 22:

To streamline the tax regime and give a fresh impetus to the financial inclusion programme, the government on Thursday exempted service tax levy on intermediaries who facilitate banks in opening of new savings accounts.

“In order to promote financial inclusion, the government has exempted services provided by a business facilitator to a banking company with respect to basic savings bank deposit accounts opening from service tax,” the finance ministry was quoted in a statement on Wednesday.

According to the ministry, the saving bank account should be covered under the Pradhan Mantri Jan Dhan Yojana (PMJDY).

The ministry elaborated that a host of services provided by an intermediary like opening of saving accounts, cash deposits, cash withdrawals, obtaining e-life certificates and Aadhar seeding, in the rural area branches of banking companies will be exempted from paying service tax. (IANS)