Date:03/03/2006 URL: http://www.thehindubusinessline.com/2006/03/03/stories/2006030302330500.htm

Back `Service tax on ATM confusing'

Our Bureau

Mumbai, March 2

The proposal to exempt investment in bank fixed deposits for a term of five years from income-tax is a positive move as banks can now mobilise more long-term deposits. Both banks and service providers remain confused regarding the proposal to charge 12 per cent service tax on ATM operations. According to Mr Looney Antony, Managing Director, Euronet India, "Banks are already paying us 10 per cent for ATM operations. Now it has been increased to 12 per cent. The Budget has merely clarified the ambiguity," he said.However, according to the spokesperson of NCR, another ATM manufacturer, there is some confusion over the proposal. "We would definitely be impacted by the proposal. Some services are being charged now. But we would like to wait till the fine print is clear."