As per the query raised by the Excise Auditor. we are paying service tax on reverse charged method on service catagory 'Banking and other financial service' and availing credit to avoid any litigation with Department. As per our knowledge the applicability of service tax on Bank charges (Remittance amount) w.e.f. 16.05.2008 and we have to pay service tax with interest w.e.f. 16.05.2008.
Kindly confirm.
Regards,
VINAY
Service Tax on Reverse Charge for Banking Services Confirmed; Pay with Interest from May 16, 2008. A query was raised regarding the payment of service tax on a reverse charge basis for 'Banking and other financial services,' specifically concerning bank charges since May 16, 2008. The inquirer is paying the tax and availing credit to prevent litigation. The query seeks confirmation on the requirement to pay service tax with interest from the specified date. The response confirms that payment of service tax with applicable interest from May 16, 2008, is indeed necessary. (AI Summary)
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