Dear all,
I want to know whether service tax is payable on the interest free security deposits received by the assessee. my client is a club and the club receives interest free refundable security deposits from its members to safe guard the assets of the club and any type of future losses due to any member.
kindly reply.(if possible with some valid case law, notification, circular etc.)
thanx to all in advance.
Service Tax Applicability on Interest-Free Security Deposits by Clubs Questioned; Not Payment for Services, Says Respondent. A query was raised regarding the applicability of service tax on interest-free refundable security deposits received by a club from its members. The deposits are intended to safeguard the club's assets and cover potential future losses caused by members. A respondent opined that such deposits should not be considered taxable as they do not constitute payment for services rendered. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
