Applicability of service tax on interest on arrears charged

[Asked by Guest]

Whether Interest on arreears charged to member by Cooperative Housing Society, comes within ambit of service tax and service tax payable on the same?

AI Summary

Interest on arrears charged by a cooperative housing society is not subject to service tax under the financial activity exclusion.
Interest arising from financial activities, including interest on overdue payments charged by a cooperative housing society, does not fall within the ambit of service tax and therefore such interest is not taxable as a service.