Applicability of s. tax on h.p. interest for individual
C..a......STUDENT
(Querist) 14 November 2013
This query is : Resolved
If assessee is an individual and engaged in the business of financing purchase of goods on Hire Purchase, will Service Tax provisions apply on interest received in this?
Please reply.
Devajyoti Barman
(Expert) 16 November 2013
Taxation expert can reply this query.
ajay sethi
(Expert) 16 November 2013
raise query in CA club india .com
C..a......STUDENT
(Querist) 16 November 2013
Ajay Sir, i have raised a query there....but no fruitful reply came up
prabhakar singh
(Expert) 16 November 2013
Earlier the service was not defined.Now it has been.Under the newly inserted section 65B(44) in the Finance Act, 2012, which reads as follows-
" "Service" means any activity carried out by a person for another for consideration, and includes a declared service, but shall not include—
a) an activity which constitutes merely,––
i) a transfer of title in goods or immovable property, by way of sale, gift or in any other manner; or
ii) such transfer, delivery or supply of any goods which is deemed to be a sale within the meaning of clause (29A) of article 366 of the Constitution; or
iii) a transaction in money or actionable claim.
b) a provision of service by an employee to the employer in the course of or in relation to his employment;
c) fees taken in any Court or tribunal established under any law for the time being in force."
Then we have a Hire Purchase Act,1972.A hirer and a owner (and a surety)are expected parties.
It is not clear from the query what exactly
the querist do?
In a h
C..a......STUDENT
(Querist) 17 November 2013
Sir, Its a pure case of the interest earner being a 3rd party to the sale of goods between Seller and buyer by providing finance to the buyer on Hire Purchase Basis.
R.K Nanda
(Expert) 17 November 2013
consult tax lawyer.
H.M.Patnaik
(Expert) 15 March 2016
If the transaction entered between the parties noted is by way of H.P. contract,the facilitation charge earned in the process shall be exigible Service Tax under the Act.
