Service tax calculation for bank loan
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
05 June 2015
R/Sir
Mr.X borrowed rs. 30 lacs loan from a bank. He pays Rs. 15000 EMI (Rs.9000 Principal & Rs. 6000 Interest), then as per rate of Service Tax 14%, on which amount service tax is calculated?
On 6000 i.e. interest part or any other amount?
Mr.X borrowed rs. 30 lacs loan from a bank. He pays Rs. 15000 EMI (Rs.9000 Principal & Rs. 6000 Interest), then as per rate of Service Tax 14%, on which amount service tax is calculated?
On 6000 i.e. interest part or any other amount?
05 June 2015
only on the intrest part service tax should be applied and not on principle amount.
CA R SEETHARAMAN
(Expert)
05 June 2015
No service tax payable on interest payments.
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