rahul (director) 17 February 2012
today I was surprized to know that banks are asking for service tax on int amount on loan given on the basis of CC it "CASH ON CALL"
suppose Im getting a loan of 4lac @ 14 %PA ,for 24 month then EMI will be Rs 19,205.15
and the total interest paid in 24 month is Rs 60,923.60 so bank charge 10.3 on 60923.60. i.e. 6275.13
is this ok.
Im already paying EMI on car loan and Home loan to other bank... they are not charging this service tax.
what to do with this new loan offer of Rs 4 lac.
Shivakumar (MANAGING DIRECTOR) 20 February 2012
Visit RBI and check for banking norms for charging of Service Tax even in case of Co-Op banks
visit service tax online and check for the same details of charging
Best Regards
Shivakumar
RAJU O.F., (Advocate) 22 February 2012
If service tax was mentioned in the contract/agreement while availing of the loan, in addition to agreed interest, then bank is justified in charging service tax.
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