service tax on operating lease of auto rickshaws, Service Tax

[satbir singh wahi]

NBFC WANTS TO LEASE OUT AUTO RICKSHAWS AS OPERATING LEASE. WHETHER THERE IS SERVICE TAX ON INTEREST PAYMENTS.  BUT ON HYPOTHECATION OF ASSETS , INTEREST INCOME , NO SERVICE TAX IS PAID BY BANKS. PLEASE CLARIFY. 

Posts / Replies

[ALOK GUPTA]

Your question is not supported by full facts & figures. Interest payment is out of ambit of service tax. How does hypothecation of assests & interest income come into picture. What is the nexus between NBFC & banks? Whether you compare the service rendered by an NBFC & a Bank? Which amount, to come under tax purview, is being sought for?

[Views expressed are individual in nature]

[satbir singh wahi]

NBFC WANTS TO LEASE OUT AUTO RICKSHAWS AS OPERATING LEASE. WHETHER THERE IS SERVICE TAX ON INTEREST INCOME EARNED ON OPERATING LEASE OF AUTORICKSHAWS.

[Vijay Chitte]

As per Notification 04/2006-ST, w.e.f. 01.03.2006 service tax will be payable only on 10% of Interest plus management fees / Documentation charges/ processing fees in case of hire purchase and leasing.

[Rajeev Gupta]

Service Tax is not leviable in case of OPERATING lease.