No Service Tax Payable On Banking Services Rendered By PNB To RBI: CESTAT

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) ruled that Punjab National Bank (PNB) is liable to pay service tax on banking services provided to the Reserve Bank of India (RBI). The tribunal clarified that banking services offered to the RBI are not exempt from service tax, thereby holding PNB accountable for the tax dues. This decision reinforces the applicability of service tax on banking services and clarifies the tax liabilities of banks in their dealings with the RBI.