S TAx on prepayment Charges
This query is : Resolved
07 August 2008
We at our bank levy prepayment charges on our customers for early repayment of loans.
Are the prepayment charges( charge by all banks) are also liable to service tax?
pls confirm it with support of notification if any in this regard by CBEC or any other authorities.
and are we right in charging the customers with service tax as we treat it as service.
Urgent reply pls.
Are the prepayment charges( charge by all banks) are also liable to service tax?
pls confirm it with support of notification if any in this regard by CBEC or any other authorities.
and are we right in charging the customers with service tax as we treat it as service.
Urgent reply pls.
07 August 2008
Prepayment charges are levied only to compesate the loss of interest the bank may suffer due to prepayment of a loan. There is no service involved here to levy service tax.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Supply through E-commerce Operators
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- Relief u/s Section 89
- Sales return eway bill
- GST Rate applicable for 0% Food Items sold by an Industrial Caterer
- Loan by Partnership Firm
- Is it compulsory to File 10E if Income including Pension Arrears is below 12 Lakh for the F Y 25 26
- SALE BILL AGAINST GOODS RETURN
- Is E Way Bill Valid If Transport ID Not Mentioned in PART A But Vehicle details mentioned in PART B
- E way bill for tractors
- Specified Profession
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- STCG....................................................
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
