IS service tax is applicable on Late payment fee charged to individiual customers.
Dhanunjay Harnadh (CA - Final) (77 Points)
28 October 2010IS service tax is applicable on Late payment fee charged to individiual customers.
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 29 October 2010
If in realtion to taxable services then maybe payable. I think there are some decisions in case of Telephone companies which maybe checked up to confirm the same.
Ganesh
(CA)
(111 Points)
Replied 29 October 2010
Dear Dhanunjay,
There are certain Tribunal decisions wherein it was held that Service Tax is not payable on Interest charged for late payment. On similar lines, I feel the late payment fee you are referring to may also not attract service tax.
Thanks,
Ganesh
CAclubindia
