SERVICE TAX ON NBFC, Service Tax

[NITIN GARG]

DEAR SIR

One of my client is running a NBFC, he is having income from Interest from loan/ hypothecation   transactions, does it chargeable to service tax under banking and financial services or not.

Posts / Replies

[Madhukar N Hiregange]

On interest there is no liability. Other incomes maybe subjected to ST

[Pradeep Khatri]

Dear Nitin,

Earning interest is not treated at par with providing/receiving services, therefore, no service tax would be leviable.

Regards

Team YAGAY & SUN

(Management & Indirect Taxation Consultants)