Service tax on gold loan
This query is : Resolved
Shirish Shah
(Querist)
16 June 2016
hello sir,
please clarify to me that is service tax applicable on HUF if the huf takes gold bar (99.50 purity) as loan from relatives and gives that same to jewellery firm. and in exchange receives interest on gold loan from jewellery firm rs. 12 lakhs and distributes rs. 9 lakhs as interest to relatives against gold bar received.
In this case is HUF liable to pay service tax?
regards:
Girish Shah
please clarify to me that is service tax applicable on HUF if the huf takes gold bar (99.50 purity) as loan from relatives and gives that same to jewellery firm. and in exchange receives interest on gold loan from jewellery firm rs. 12 lakhs and distributes rs. 9 lakhs as interest to relatives against gold bar received.
In this case is HUF liable to pay service tax?
regards:
Girish Shah
CA Anant Tyagi
(Expert)
16 June 2016
Dear
As per clause (n) of Negative list following service are not liable to service tax -
Service by way of -
* Extending deposits, loans or advance in so far as the consideration is presented by way of interest or discount.
Hence in your case, consideration is interest so HUF is not liable to pay service tax .
As per clause (n) of Negative list following service are not liable to service tax -
Service by way of -
* Extending deposits, loans or advance in so far as the consideration is presented by way of interest or discount.
Hence in your case, consideration is interest so HUF is not liable to pay service tax .
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