Service Tax on Credit Card Interest

Elroy Joseph Lewis (CA Final) (83 Points)

24 April 2011

Dear Friends,

I would like to know whether Interst charged on Credit Card in the Monthly statement is taxable under Service Tax?

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3 Replies

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 24 April 2011

read the statement carefully,

in credit card there are several bank charges for non payment, service charges are leviable on them

for interest portion "interest tax " is leviable separately

Elroy Joseph Lewis (CA Final) (83 Points)
Replied 24 April 2011

Sir thanks for the reply,

service tax is charged in the statement on charges as well as interest portion.

As per my knowledge interest is not covered under service tax. I want to confirm that

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 24 April 2011

finance charges are diff than interest ................

if they have charged service tax on interest specifically then u can ask them for details and return the same.

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