Applicability of service tax on interest on arrears charged, Service Tax

[Viral Damania]

Whether Interest on arreears charged to member by Cooperative Housing Society, comes within ambit of service tax and service tax payable on the same?

Posts / Replies

[Surender Gupta]

There is not service tax on Interest received on financial activities. Once a payment becomes overdue and interest being charged on such overdue, such interest can not be taxed as per the provisions.