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Banking services atm nfs charges

Queries 545 views 6 replies

The ATM NFS charges are either received/paid by the bank. Every month the income or expenses depends upon the usage of ATM cards by the particular bank's customers vis-a-vis which ATM is used for the swipe of the cards. If the customer of bank A swipes the bank B's ATM then the Bank B has income and in turn Bank A has expense. 

For the bank, the statement is received with a details of Incomes and Expenses. My question is whether we should net it out and take the net receivable/payable or should we show income and expense seperately?

If we show seperate income and expenses, then the service tax on expense can be taken as input credit only to the extent of 50%.

 

What is correct treatement? Please comment/guide.

Replies (6)
ques. is not clear... on whose behalf treatment of s.tax is reqd. to be done... is it bank or the customer??

It is the service tax treatement for the bank. See we have to pay monthly service tax on behalf of the bank to the treasury of central government. Now the position is whether the ATM NFS charges to be netted out or should we have seperate treatement for receivable and payable ATM charges seperately?

it should be shown separately abd input credit will be available for s.tax paid.

but then you say only 50% credit is available. can you pls clarify.

It sees you are not aware properly. In case of bank, whatever is the input service tax, only 50% can be taken as credit and remaining is written off. Kindly see the input rules.

yes, its correct. i wasnt aware of this rule.

The question is still pending and remaining. Whether ATM NFS charges are to be netted or not?


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