APPENDIX - CLARIFICATION ON APPLICABILITY OF INTEREST-TAX ACT TO HIRE PURCHASE TRANSACTIONS
APPENDIX
TEXT OF RELEVANT CIRCULARS/NOTIFICATIONS
CLARIFICATION ON APPLICABILITY OF INTEREST-TAX
ACT TO HIRE PURCHASE TRANSACTIONS
1. The Board have received representations seeking clarification about chargeability of interest-tax on finance charges accruing or arising to hire purchase finance companies.
2. The matter has been examined in consultation with the Ministry of Law. The Finance (No. 2) Act, 1991, extended the scope of interest-tax so as to cover "credit institutions" which include financial companies and in particular hire purchase finance companies carrying on their principal business as hire purchase transactions or the financing of such transactions.
3. Hire purchase transactions are generally in the nature of finance transactions entered into by .... To read the full section download the app from Google Play store
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