https://www.taxtmi.com/caselaws?id=767799 CESTAT Kolkata dismissed Revenue's appeal regarding service tax on income from loan portfolio assignment. The respondent sold loan portfolios to banks/financial institutions and separately entered collection agency agreements for nominal fees, paying service tax on these fees. Revenue contended that excess interest spread between borrower payments and assignee yield constituted consideration for recovery services. CESTAT held no service element existed as respondent collected amounts as original lender, not recovery agent, since borrowers weren't party to assignment agreements. Following precedent in Sundaram Finance Ltd., the tribunal ruled income from loan assignment qualified as interest income exempt from service tax under Rule 6(2)(iv) of Service Tax (Determination of Value) Rules, 2006. en-us Wed, 19 Mar 2025 00:00:00 +0530 Wed, 26 Mar 2025 06:50:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=767799 CESTAT Kolkata dismissed Revenue's appeal regarding service tax on income from loan portfolio assignment. The respondent sold loan portfolios to banks/financial institutions and separately entered collection agency agreements for nominal fees, paying service tax on these fees. Revenue contended that excess interest spread between borrower payments and assignee yield constituted consideration for recovery services. CESTAT held no service element existed as respondent collected amounts as original lender, not recovery agent, since borrowers weren't party to assignment agreements. Following precedent in Sundaram Finance Ltd., the tribunal ruled income from loan assignment qualified as interest income exempt from service tax under Rule 6(2)(iv) of Service Tax (Determination of Value) Rules, 2006. Case-Laws Service Tax Wed, 19 Mar 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=767799