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TMI Blog2014 (8) TMI 380X X X X Extracts X X X X X X X X Extracts X X X X ..... towards loan processing fee and service charges and would be taxable under “banking and other financial services” as defined under Section 65(12) and made taxable under Section 65(105)(zm) of Finance Act, 1994 - Held that:- prima facie, appellant is not a financial institution considering the definitions at Sections 45I(c) and 45I(e) in RBI Act, 1934 - Since Only for a brief period under dispute, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SHGs they charge 15% from such persons. Revenue was of the view that this 3% was towards loan processing fee and service charges and would be taxable under banking and other financial services as defined under Section 65(12) and made taxable under Section 65(105)(zm) of Finance Act, 1994. There were other incomes shown in the balance sheet of the applicant towards income from insurance, training ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nstitution or Non Banking Financial Company or a commercial concern but was instead a Trust. Only for a brief period under dispute, Section 65(12) provided for taxing service rendered by any other person for the rest of the period the service was taxable only if it was provided by a Financial Institution, NBFC or a commercial concern. Therefore, he submits that the demand for service tax is not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, 1934. He further submits that the applicant is charging a margin of 3% of loan amount and Revenue is demanding tax only on that part of the amount charged and not on the interest amount. As regards other miscellaneous items, he submits that they are all basically in relation to providing of loans and as per Section 65(105) (zm) any service in relation to banking and financial services are taxab ..... X X X X Extracts X X X X X X X X Extracts X X X X
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