https://www.taxtmi.com/caselaws?id=444943 Service tax could not be extended to notional interest on interest-free security deposits collected from tenants, because section 67 of the Finance Act, 1994 taxes only the gross amount charged as consideration for the taxable service. The rent was the agreed consideration for leasing the immovable property, while the security deposit served a separate protective purpose against default, utility dues, or damage. In the absence of any specific statutory deeming provision treating notional interest on such deposits as part of the taxable value, the valuation could not be enlarged by implication. The resulting demand was therefore unsustainable. en-us Tue, 12 Sep 2023 00:00:00 +0530 Thu, 26 Oct 2023 09:56:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=444943 Service tax could not be extended to notional interest on interest-free security deposits collected from tenants, because section 67 of the Finance Act, 1994 taxes only the gross amount charged as consideration for the taxable service. The rent was the agreed consideration for leasing the immovable property, while the security deposit served a separate protective purpose against default, utility dues, or damage. In the absence of any specific statutory deeming provision treating notional interest on such deposits as part of the taxable value, the valuation could not be enlarged by implication. The resulting demand was therefore unsustainable. Case-Laws Service Tax Tue, 12 Sep 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=444943