Levy of service tax on ATM interchange fees received by State ...

ATM Interchange Fees & Notional Consideration: No Double Taxation for Associate Banks.

Case Laws Service Tax

October 14, 2024

Levy of service tax on ATM interchange fees received by State Bank of Hyderabad from SBI for deploying its ATMs in the shared network, and on notional consideration for free ATM services provided to other associate banks and SBI. It holds that since SBI paid service tax as an agent for associate banks, service tax cannot be demanded again from associate banks. The demand for service tax on ATM interchange fees received from SBI is set aside. Regarding notional consideration for free ATM services, it states that no fee was charged as per the contractual understanding, and hence no service tax is leviable. The extended period of limitation u/s 73(1) of the Finance Act was correctly invoked as there was no willful suppression of facts with intent to evade tax. Consequently, the appeals filed by State Bank of India are allowed.

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Levy of service tax on ATM interchange fees received by State ...

ATM Interchange Fees & Notional Consideration: No Double Taxation for Associate Banks.

Case Laws Service Tax

October 14, 2024

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