https://www.taxtmi.com/caselaws?id=775194 Maintenance deposits collected from flat buyers for discharge of a statutory obligation under the Karnataka Ownership Flats Act, 1972 were not treated as a separate taxable service merely because the corpus was held and applied for outgoing expenses. Where service tax had already been paid on the actual maintenance expenditure, the notional interest earned on the deposit corpus could not be taken as the taxable value for management, maintenance or repair service. The reasoning followed earlier Tribunal decisions that such collections do not constitute a standalone service transaction and that tax cannot be levied again on the interest component of a statutory maintenance deposit. en-us Wed, 02 Jul 2025 00:00:00 +0530 Tue, 22 Jul 2025 08:25:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=775194 Maintenance deposits collected from flat buyers for discharge of a statutory obligation under the Karnataka Ownership Flats Act, 1972 were not treated as a separate taxable service merely because the corpus was held and applied for outgoing expenses. Where service tax had already been paid on the actual maintenance expenditure, the notional interest earned on the deposit corpus could not be taken as the taxable value for management, maintenance or repair service. The reasoning followed earlier Tribunal decisions that such collections do not constitute a standalone service transaction and that tax cannot be levied again on the interest component of a statutory maintenance deposit. Case-Laws Service Tax Wed, 02 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=775194