https://www.taxtmi.com/caselaws?id=415717 The Supreme Court held that the issuing bank is liable to pay service tax on the interchange fee earned from credit card transactions under Section 65(33a)(iii) of the Finance Act, 1994. However, the Court remanded the case to determine if the acquiring bank had already paid tax on the interchange fee to avoid double taxation. The Court rejected arguments that interchange fees are interest, affirmed that credit card transactions are taxable services, and clarified that services by issuing and acquiring banks are separate. The Court directed the issuing bank to file returns and pay tax on interchange fees, emphasizing compliance with tax obligations. en-us Thu, 09 Dec 2021 00:00:00 +0530 Mon, 13 Dec 2021 09:43:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=415717 The Supreme Court held that the issuing bank is liable to pay service tax on the interchange fee earned from credit card transactions under Section 65(33a)(iii) of the Finance Act, 1994. However, the Court remanded the case to determine if the acquiring bank had already paid tax on the interchange fee to avoid double taxation. The Court rejected arguments that interchange fees are interest, affirmed that credit card transactions are taxable services, and clarified that services by issuing and acquiring banks are separate. The Court directed the issuing bank to file returns and pay tax on interchange fees, emphasizing compliance with tax obligations. Case-Laws Service Tax Thu, 09 Dec 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=415717