11 October 2008
Section 65 (33a) says any service provided... Similarly section 67 says consideration includes any amount payable for the services provided.... On a reading of the above sections it seems that a bank can charge service tax on the late payment fees also.
12 October 2008
Sir but service tax can only be charged on services rendered,and late payment charges is a penalty....so bank should charge the interest on late payment....
13 October 2008
Sir, in reply to my above query you have given references of section(65(33A)&67,but service tax has not been framed into any act,so there are no sections but rules as it is prescribed in the chapter 5 of the finance act,1994.... pls clarify sir...
CAclubindia
