Circular No.ES/ 225 /2016-17 December 09, 2016
To: Members of the Council
Sub: Seeks to amend exemption Notification No. 25/2012-ST dated 20.06.2012 so as to exempt services by an acquiring bank, to any person in relation to settlement of an amount upto two thousand rupees in a single transaction transacted through credit card, debit card, charge card or other payment card service
Dear Sir,
This is to inform you that Central Board of Excise and Customs has issued Notification No. 52/2016- Service Tax dated 08.12.2016 by making amendments in the Notification No.25/2012-Service Tax dated the 20.06.2012 on the above subject.
In the said notification, in the opening paragraph, after entry 63, the following entry shall be inserted, namely,-
“64. Services by an acquiring bank, to any person in relation to settlement of an amount upto two thousand rupees in a single transaction transacted through credit card, debit card, charge card or other payment card service.
Explanation — For the purposes of this entry, “acquiring bank” means any banking company, financial institution including non-banking financial company or any other person, who makes the payment to any person who accepts such card.”
Members may kindly make note of the same.
Thanking you,
V. ANIL KUMAR
EXECUTIVE DIRECTOR
