Service Tax liability on Late payment charges

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..... Respected All, A service provider collect late payment charges from his customers, is he liable to pay service tax on such late payment charges? Regards, Sanjeev - Reply By Brijesh Verma - The Reply = Dear Sanjeev Refer rule 6 of the Service Tax (Determination of Value) Rules, 2006 . (2) Subject to the provisions contained in sub-rule (1), the value of any taxable service, as .....

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..... the case may be, does not include- (i) initial deposit made by the subscriber at the time of application for telephone connection or pager or facsimile (FAX) or telegraph or telex or for leased circuit; (ii) the airfare collected by air travel agent in respect of service provided by him; (iii) the rail fare collected by 1 [rail travel agent] in respect of service provid .....

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..... ed by him; 6 [ (iv) interest on delayed payment of any consideration for the provision of services or sale of property, whether moveable or immoveable ] ; 2 [(v) the taxes levied by any Government on any passenger travelling by air, if shown separately on the ticket, or the invoice for such ticket, issued to the passenger.] 7 [ ( vi ) accidental damages due to unfores .....

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..... een actions not relatable to the provision of service; and ( vii ) subsidies and grants disbursed by the Government, not directly affecting the value of service. ] - Reply By Sanjeev Chauhan - The Reply = Thanks a lot Sir. - Reply By MANDAVILLI RAMAKRISHNA - The Reply = if and only if, you credited the interest collected account then no need to pay ST if you credit Misc. rec .....

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..... eipts or other income account, you have to pay ST - Service Tax liability on Late payment charges - Query Started By: - Sanjeev Chauhan Dated:- 10-10-2013 Service Tax - Got 3 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

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