Service Tax Imposed on Cheque Dishonor Charges: Rule 5 Highlights Intangible Service Nature and Justifiable Tax Recovery.

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....Levy of service tax on charges collected on dishonoring of cheques - Service being intangible, arguments are raised based on Rule 5 of Service Tax (Determination of Value) Rules, 2006 etc. But the situation is essentially the same as in the case of removal of inputs without reversal of credit taken and prima facie cannot be approved of and full recovery of such amount may be prima facie justifiable - AT....