(a) whether the Government is aware that the levy of service tax on chit funds has adversely affected middle and lower- income households;
(b) if so, the details thereof;
(c) whether the Government proposes to extend the benefit of exemption from service tax or abatement of 90 per cent to chit funds as available to the Non-Banking Financial Company (NBFC); and
(d) if so, the details thereof, if not, the reasons therefor?
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| ANSWER |
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI SANTOSH KUMAR GANGWAR)
(a): Chit Funds per se being a mere transaction in money are not leviable to service tax. Service tax is leviable on services provided by foreman of a chit fund in relation to chit.
(b), (c) & (d): Does not arise, in view of reply to part (a) above. |
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