6) Money Changing

Cash transactions are not subjected to this levy, but when currencies are exchanged forex dealers charge a commission and this commission will be subjected to service tax. ET experts stated, for the purpose of calculating this service tax, the difference between the buying/selling price of the currency and the RBI reference rate may be considered.

7) Mutual Funds Exit Loads

As per this change in the service tax, entry/exit loads paid on purchase or sale of mutual funds will be subjected to service tax. These loads are basically a part of documentation, asset management and for covering other expenses. Presently, mutual funds are not allowed to charge entry load, but if the clause is implied again, one must be prepared to pay it.