Service tax on interest free security deposit

This query is : Resolved 

07 January 2012

Most of the Landlords receive interest free security deposit from tenants. whether notional interest can be taxed on that interest free security deposit under service tax law. Please refer relevant case law.

Aditya Maheshwari (Expert)
07 January 2012

Didnt find any case law but no service tax is leviable as it is on any interest charged and hence no service tax could be levied on notional interest.

Also in ordinary rent circumstances where deposit amount is as per general trend and not abnormal no interest can be levied as per Income tax laws also as decided in case of CIT v/s J. K. Investors by supreme court.

You need to be the querist or approved CAclub expert to take part in this query .

Click here to login now

Similar Resolved Queries :

× Online Coaching My Enrolled Courses
Articles Forum News Experts Exams Share Files Income Tax Accounts Career Corporate Law Service Tax Video Judgements Rewards Top Members Events Albums Find Friends Featured Feed Scorecard Bookmarks Mock Test Poll Notification Knowledge Finder Coaching Institutes Trainee Corner Jobs
close x
Download GST App    |    x