service tax on operating lease of auto rickshaws

[satbir singhwahi]

NBFC WANTS TO LEASE OUT AUTO RICKSHAWS AS OPERATING LEASE. WHETHER THERE IS SERVICE TAX ON INTEREST PAYMENTS.  BUT ON HYPOTHECATION OF ASSETS , INTEREST INCOME , NO SERVICE TAX IS PAID BY BANKS. PLEASE CLARIFY. 

AI Summary

Debate on Service Tax Applicability to Interest Income from NBFCs' Auto Rickshaw Operating Leases, Citing Notification A discussion on a forum revolves around whether service tax applies to the interest income from the operating lease of auto rickshaws by a Non-Banking Financial Company (NBFC). One participant clarifies that interest payments are generally outside the scope of service tax, questioning the relevance of comparing NBFCs with banks. Another participant references a notification stating that service tax is applicable on a portion of interest and associated fees in hire purchase and leasing scenarios. However, it is concluded by another participant that service tax is not applicable to operating leases.