Service Tax

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Gurmeet Sukhija

Gurmeet Sukhija (Querist)

11 October 2008 Can a bank charge service tax on late payment fees of credt card...??

pls rply soon.....

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

11 October 2008 Section 65 (33a) says any service provided...
Similarly section 67 says consideration includes any amount payable for the services provided....
On a reading of the above sections it seems that a bank can charge service tax on the late payment fees also.

CMA Gul S

CMA Gul S (Expert)

11 October 2008 Yes the Bank can charge service tax on the late fees

Gurmeet Sukhija

Gurmeet Sukhija (Querist)

12 October 2008 Sir but service tax can only be charged on services rendered,and late payment charges is a penalty....so bank should charge the interest on late payment....

Pls clarify sir....
thanks

Gurmeet Sukhija

Gurmeet Sukhija (Querist)

13 October 2008 Sir, in reply to my above query you have given references of section(65(33A)&67,but service tax has not been framed into any act,so there are no sections but rules as it is prescribed in the chapter 5 of the finance act,1994.... pls clarify sir...

Thanks