Exemption to interest on overdraft facility,cash credit facility or discounting of bills, bills of exchange or cheques - 029/04 - Service Tax

Rescinded vide Notification No. 34/2012- Service Tax, Dated 20/06/2012

Exemption to interest on overdraft facility, cash credit facility or discounting of bills, bills of exchange or cheques

[Notification No. 29/2004-S.T., Dated 22/09/2004]

[As amended by notification no. 19/2006 ST dated 25-4-2006]

In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts so much of the value of taxable service provided to a customer, by a banking company or a financial institution including a non-banking financial company, or any other body corporate or ¹[any other person], in relation to,-

(a) overdraft facility;

(b) cash credit facility; or

(c) discounting of bills, bills of exchange or cheques,

as is equivalent to the amount of interest on such overdraft, cash credit or, as the case may be, discount, from the service tax leviable thereon under section 66 of the said Act, subject to the condition that the said interest amount is shown separately in an invoice, a bill or, as the case may be, a challan issued for this purpose.

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Note :

1. For the words "commercial concern", the words "any other person" has been substituted vide Notification No.19/2006 dated 25/4/2006