https://www.taxtmi.com/caselaws?id=205278 In financial leasing and hire-purchase transactions, the principal amount recovered toward the original cost of equipment is not consideration for taxable service and is excluded from service tax valuation. Only lease management fee, processing fee, documentation charges, and the finance or interest component form the taxable consideration. A demand raised on the entire principal amount was contrary to the Board circular, so service tax could not be sustained on that basis and the matter required re-quantification in line with the circular. en-us Mon, 21 Feb 2011 00:00:00 +0530 Fri, 02 Sep 2011 10:52:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=205278 In financial leasing and hire-purchase transactions, the principal amount recovered toward the original cost of equipment is not consideration for taxable service and is excluded from service tax valuation. Only lease management fee, processing fee, documentation charges, and the finance or interest component form the taxable consideration. A demand raised on the entire principal amount was contrary to the Board circular, so service tax could not be sustained on that basis and the matter required re-quantification in line with the circular. Case-Laws Service Tax Mon, 21 Feb 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=205278