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Chit funds can't be treated as fund management, says SC against CBEC's plea

Therefore, the order stops the Centre from levying service tax on chit funds

Chit funds can't be treated as fund management, says SC against CBEC's plea

In a relief to the chit fund industry, the Supreme Court (SC) has said that the government cannot impose service tax on the chit fund business, and observed that it cannot be treated as fund management, according to the current understanding. The industry has challenged the government's order asking them to pay the service tax on the chit fund business, said industry representatives. The Central Board of Excise and Customs (CBEC) of the Ministry of Finance has issued a circular in August 2007, asking the chit funds to pay the service tax as it was a service provided by these ...