https://www.taxtmi.com/circulars?id=4338 Levy of service tax applies to pre-closure or fore-closure charges collected by banks and financial institutions in relation to lending, since these charges are not interest but are consideration for services. Banking and other financial services include lending, and such non-interest amounts must be treated as consideration for services and accordingly be levied to service tax. Field formations are instructed to take appropriate action to ensure consistent treatment and enforcement. en-us Wed, 11 Jun 2008 00:00:00 +0530 Fri, 06 Jan 2012 12:11:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/circulars?id=4338 Levy of service tax applies to pre-closure or fore-closure charges collected by banks and financial institutions in relation to lending, since these charges are not interest but are consideration for services. Banking and other financial services include lending, and such non-interest amounts must be treated as consideration for services and accordingly be levied to service tax. Field formations are instructed to take appropriate action to ensure consistent treatment and enforcement. Circulars Service Tax Wed, 11 Jun 2008 00:00:00 +0530 https://www.taxtmi.com/circulars?id=4338