Applicability of s. tax on h.p. interest for individual

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Sushant Mahajan (Querist)

17 October 2013 If assessee is an individual and engaged in the business of financing purchase of goods on Hire Purchase, will Service Tax provisions apply on interest received in this?

Please reply.

CA Parul Saxena

CA Parul Saxena (Expert)

17 October 2013 yes service tax provision applicable if annual turnover crosses the limit of Rs.10lakhs

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Sushant Mahajan

Sushant Mahajan (Querist)

17 October 2013 Thank You.

And can you please confirm, it will be applicable irrespective of assessee being individual or body corporate.

and also that will abatement be available?

CA Parul Saxena

CA Parul Saxena (Expert)

17 October 2013 service tax is applicable on everyone except individual if he let out his property for residential purpose.

Sushant Mahajan

Sushant Mahajan (Querist)

17 October 2013 Mam, i think there is some confusion. I am asking about Hire Purchase finance services by an individual.

CA Parul Saxena

CA Parul Saxena (Expert)

17 October 2013 Yes i am giving the reply of your query....as you are engaged in hire purchase service (and not letting out house property for residential purpose) so your service is taxable.

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Sushant Mahajan

Sushant Mahajan (Querist)

17 October 2013 okay....you mean every service provided by an individual except renting of property of House property for residential purpose is under the ambit of service tax.

and what about the abatement of 10% mam, can it be availed?

Sushant Mahajan

Sushant Mahajan (Querist)

17 October 2013 Mam, if possible, can you please give me some reference in the law or some case laws on the applicability of the provisions in this case.

It will be a great help.

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