Service tax on notional interest on securty deposit
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
10 November 2013
Dear Sir,
One of my client let out his commercial property and paying service on tax on rent received.
Apart from that he received fix amount as refundable security deposit.
Department demand service tax on notional interest on such security deposit.
As per my opinion service tax not payable on notional interest.
Are you agree with we ?
Please provide any case law in favour of your opinion.
One of my client let out his commercial property and paying service on tax on rent received.
Apart from that he received fix amount as refundable security deposit.
Department demand service tax on notional interest on such security deposit.
As per my opinion service tax not payable on notional interest.
Are you agree with we ?
Please provide any case law in favour of your opinion.
Nikhil Kaushik
(Expert)
10 November 2013
this is new. I don't think service tax is applicable on notional interest. Rather even actual interest won't attract service tax.
You may refer to : Magarpatta Township Development & Construction Co. Ltd. Vs CCE [2013-TIOL-1068-CESTAT-MUM
You may refer to : Magarpatta Township Development & Construction Co. Ltd. Vs CCE [2013-TIOL-1068-CESTAT-MUM
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