Service Tax

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Gurmeet Sukhija

Gurmeet Sukhija (Querist)
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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)
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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)
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11 October 2008 Yes the Bank can charge service tax on the late fees

Gurmeet Sukhija

Gurmeet Sukhija (Querist)
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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)
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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