TaxTMI 
TaxTMI 
Service Tax on pre-closure charges received by the banks / financial institution on pre-payment of loan.
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....ervice Tax on pre-closure charges received by the banks / financial institution on pre-payment of loan. <br>News and Press Release<br>Dated:- 22-6-2008<br><BR>All the banks engaged in lending of money....
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.... is facing an issue relating to applicability of Service Tax on fore-closure / pre-closure charged towards pre-payment of loan amount. In several cases, department has issued show cause notices and i....
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....n some cases, the matter is still pending before CESTAT for final decision. In the meantime, department has issued a clarification that, fore-closure charges received by the banks / financial institu....
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....tions can not be treated as interest and therefore, liable to service tax. See. F No 345/6/2008-TRU dated 11-6-2008.<BR> News - Press release - PIB....