Madhu Ponnurangam (Manager Finance & Accounts) (21 Points)
07 January 2017Hi Expects,
I took loan on my credit card in 2013 and have been paying monthly emi. Now bank is charging service tax for monthly interest amount effective Nov 2016. When i check with bank, they said as per Govt notification its chargable. Could you please clarify on this? if this chargeable will home loan EMI interest also comes under service tax catogory?
Rgds
Madhu
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 07 January 2017
There is no ST on interest but it is there on the other services including delayed payment charges. The Card companies loot the public by charges based on past outstanding and at very high rates. They cannot justify that it is interest as the rate would be 40+% at times!!! So they choose to pay ST on the whole amount. This is my impression.
CAclubindia
