Interest income

Page no : 2

Prash CoC1 (83 Points)
Replied 12 July 2017

I agree with u Debi. No. 27 of exemption list just mentions services by way of loans where consideration is in form of interest is excluded. However the ultimate recovery /collection /consideration is by way of selling a mortgaged/pledged asset by the banker, then the same might not fall within the parameters of No. 27.
It then finally accounts to "transaction in money for consideration" as the consideration will not be the interest ultimately.
Inviting your comment on the same.
Thanks for your time.

debi (GM) (70 Points)
Replied 13 July 2017

Sorry didn't understand your question. If the recovery is through the sale of the asset, its still interest and principal being recovered. Interest is exempt or not a supply ( this part is confusing) and principal is not supply.

rajesh agarwal (partner) (29 Points)
Replied 22 July 2017

sl number 27 of notification number 12/2017 central tax (rate) dated 28/06/2017. further it is understood from this definetion that possibly interest on sb account could be taxable.there are also interest like interest on credit card is taxable,interest on late payments etc are taxable.