https://www.taxtmi.com/caselaws?id=2068 Hire charges from genuine hire purchase agreements are not treated as "interest" on loans or advances for the purposes of the Interest-tax Act, 1974. The arrangement must be examined against the Hire Purchase Act, 1972: where the financier remains owner under the agreement and the hirer has only an option to purchase on fulfilment of contractual terms, the transaction is a true hire purchase and not mere lending. On that distinction, hire charges arising from vehicle hire purchase transactions fall outside the charging provision, and interest-tax does not apply. en-us Fri, 04 Aug 2006 00:00:00 +0530 Sat, 15 Jun 2013 17:29:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=2068 Hire charges from genuine hire purchase agreements are not treated as "interest" on loans or advances for the purposes of the Interest-tax Act, 1974. The arrangement must be examined against the Hire Purchase Act, 1972: where the financier remains owner under the agreement and the hirer has only an option to purchase on fulfilment of contractual terms, the transaction is a true hire purchase and not mere lending. On that distinction, hire charges arising from vehicle hire purchase transactions fall outside the charging provision, and interest-tax does not apply. Case-Laws Income Tax Fri, 04 Aug 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=2068