The negative list indicates that transaction in money or giving money as advance or deposit for consideration of interest or discount is exempt. However, it is very silent on the consideration quantum of discount or interest received on the deposit.
Therefore if a proprietor who does services of 10 lakh and above and pays service tax on his services, does he also have to raise an invoice on the bank for interest received in his personal fixed deposits or saving bank account. Does the invoice have to be raised and service tax paid based on dates the bank credits interest to his account.