Service tax on flats
This query is : Resolved
07 March 2015
Hi, can any one tell me whether interest charged on delayed payments for flat will be chargeable to service tax? Interest is for late payment of installment on completion of slab
08 March 2015
No. Charging of interest for delay in payment cannot be subjected to service tax in my opinion since it is transaction in money and excluded from levy of service tax by way of inclusion in negative list.
Message likes :
1 times
08 March 2015
Thank you, but in negative list it has mentioned only about interest on deposits, loans and advances only.
Can you Please send me any reference for it
Can you Please send me any reference for it
09 March 2015
Rule 6 of the Service tax (Determination of Value) Rules 2006 may be referred in this relation.
Rule 6(2)(iv) of the Service tax (Determination of Value) Rules 2006 provides the following exclusion from the value of service :
Subject to the provisions contained in sub-rule (1), the value of any taxable service, as the case may be, does not include–
(i)….
(ii)…..
(iii)…...
(iv) interest on delayed payment of any consideration for the provision of services or sale of property, whether movable or immovable;
Further, an extract from the educational guide on service tax - para 4.14.10 is reproduced below:
Interest for delayed payment of any consideration for the sale of goods or provision of service has been specifically excluded from value by rule 6 of valuation rules. Thus ordinarily any interest charged for delayed payment of consideration would have been outside the gambit of service tax.
Trust this clarifies!
Rule 6(2)(iv) of the Service tax (Determination of Value) Rules 2006 provides the following exclusion from the value of service :
Subject to the provisions contained in sub-rule (1), the value of any taxable service, as the case may be, does not include–
(i)….
(ii)…..
(iii)…...
(iv) interest on delayed payment of any consideration for the provision of services or sale of property, whether movable or immovable;
Further, an extract from the educational guide on service tax - para 4.14.10 is reproduced below:
Interest for delayed payment of any consideration for the sale of goods or provision of service has been specifically excluded from value by rule 6 of valuation rules. Thus ordinarily any interest charged for delayed payment of consideration would have been outside the gambit of service tax.
Trust this clarifies!
Message likes :
1 times
09 March 2015
Thank you CA Tapas
This will be really helpful
This will be really helpful
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
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- TDS on Consultancy- Non DTAA
- Reopen of assessment proceeding
- Depreciation of fixed assets- coop housing society in mumbai
- Management System (IMS)
- DIN reactivation
- COMMERCIAL INVOICE FOR MATERIAL AND FREIGHT
- GST rate and HSN code for sale of racing horses
- Query – TDS on purchase of land from NRI under Income-tax Act, 2025
- Eway bill generation from place other than registeted
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
