TaxTMI 
TaxTMI 
30 May 2014 
Section 66D (n) of the Actinter-alia provides that services by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or deposit. Interest has been defined under section 65B(30) of the Act to inter-alia mean interest payable in any manner in respect of any moneys borrowed or debt incurred including a deposit, claim or other similar right or obligation.
Thus, to get covered within the ambit of section 66D (n) of the Act, the activity should be in the nature of extending a deposit, loan or advance for which consideration should be paid in the form of interest. In other words, any amount paid as interest in respect of an activity which does not fall within the specified list of activities shall not get covered under negative list and accordingly shall be chargeable to service tax.