Dear Friends,
I would like to know whether Interst charged on Credit Card in the Monthly statement is taxable under Service Tax?
Elroy Joseph Lewis (CA Final) (83 Points)
24 April 2011Dear Friends,
I would like to know whether Interst charged on Credit Card in the Monthly statement is taxable under Service Tax?
U S Sharma
(glidor@gmail.com)
(21056 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)
(21056 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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