loan gurantee fee as a commission

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..... loan gurantee fee as a commission
Query (Issue) Started By: - MITSUI PRIME Dated:- 4-4-2014 Last Reply Date:- 14-5-2014 Service Tax
Got 4 Replies
Service Tax
Dear Sir, we have taken one loan form jabic japan, in such cases we are paying loan guarantee fee commission to their parents company in such cases pl. advice us service Tax and TDS both are attract on transaction pl. advice. .....

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..... Thanks & Regards Arjun Sachdeva Reply By Ashish Chaudhary: The Reply: If commission is paid outside India, service tax liability would arise on service receiver located in India under Reverse Charge. If commission is paid in India, service tax would be charged by service provider. Reply By Pradeep Khatri: The Reply: Dear Arjun, This would fall under the taxable category of "Banking and .....

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..... other financial services'. On loan guarantee fee you would have to pay the service tax under POPs Rules. This would be paid under Notification No. 30/2012-ST/20.06.2012 w.e.f. 01-07-2012 under reverse charge mechanism. Regards Team YAGAY & SUN (Indirect Tax Consultants) Reply By Naveed S: The Reply: Yes, service tax required to be paid under R.C.M, as explained above. Reply By GC BAID: T .....

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..... he Reply: In my opinion processing charges are in the nature of interest and included in the definition of interest as stipulated u/s 2(28A) "interest" means interest payable in any manner in respect of any money borrowed or debt incurred (including deposit, claim or other similar rights or obligation) and included any service fee or other charge in respect of the money borrowed or debt .....

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..... incurred or in respect of any credit facility which has not been utilised. and there is requirement to deduct TDS from payment of interest. G C Baid
Discussion Forum - Knowledge Sharing .....

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