Specified income of Baddi Barotiwala Nalagarh Development Authority receives conditional tax exemption, retrospectively covering its designated assess...
Specified development authority income receives retrospective tax exemption, subject to non-commercial activity, unchanged income sources, and return-...
Unified Brand India framework introduces voluntary Trust Mark certification and funding support for export branding, packaging and global promotional ...
Origin Declaration authentication governs preferential tariff claims under India-UK CETA, requiring a validated reference number before import clearan...
Separate assessment orders for different years remain valid when distinct notices and hearing opportunities prevent prejudice from combined proceeding...
The Supreme Court held that the acquiring bank should pay service tax on the entire Merchant Discount Rate (MDR), which includes the interchange fee payable to the issuing bank, rather than separately taxing the interchange fee received by the issuing bank. The use of the conjunction 'and' in the relevant provision indicates the legislative intent to tax the MDR as a whole, without bifurcating it. Taxing the MDR at the first point of collection by the acquiring bank facilitates ease of tax collection and avoids revenue loss. The Revenue Department had all relevant data and could have ascertained the position before issuing show cause notices demanding separate taxation of the interchange fee. As the service tax on the entire MDR has already been paid, no separate tax is payable on the interchange fee component.
The Supreme Court held that the acquiring bank should pay service tax on the entire Merchant Discount Rate (MDR), which includes the interchange fee payable to the issuing bank, rather than separately taxing the interchange fee received by the issuing bank. The use of the conjunction 'and' in the relevant provision indicates the legislative intent to tax the MDR as a whole, without bifurcating it. Taxing the MDR at the first point of collection by the acquiring bank facilitates ease of tax collection and avoids revenue loss. The Revenue Department had all relevant data and could have ascertained the position before issuing show cause notices demanding separate taxation of the interchange fee. As the service tax on the entire MDR has already been paid, no separate tax is payable on the interchange fee component.
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