TaxTMI 
TaxTMI 
Service Tax liability on Late payment charges
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....ervice Tax liability on Late payment charges<br> Query (Issue) Started By: - Sanjeev Chauhan Dated:- 10-10-2013 Last Reply Date:- 21-10-2013 Service Tax<br>Got 3 Replies<br>Service Tax<br>Respected All, A service provider collect late payment charges from his customers, is he liable to pay service tax on such late payment charges? Regards, Sanjeev Reply By Brijesh Verma: The Reply: Dear Sanje....
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....ev Refer rule 6 of the Service Tax (Determination of Value) Rules, 2006. (2) Subject to the provisions contained in sub-rule (1), the value of any taxable service, as the case may be, does not include- (i) initial deposit made by the subscriber at the time of application for telephone connection or pager or facsimile (FAX) or telegraph or telex or for leased circuit; (ii) the airfare collec....
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....ted by air travel agent in respect of service provided by him; (iii) the rail fare collected by 1[rail travel agent] in respect of service provided by him; 6[(iv) interest on delayed payment of any consideration for the provision of services or sale of property, whether moveable or immoveable]; 2[(v) the taxes levied by any Government on any passenger travelling by air, if shown separately o....
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....n the ticket, or the invoice for such ticket, issued to the passenger.] 7[(vi) accidental damages due to unforeseen actions not relatable to the provision of service; and (vii) subsidies and grants disbursed by the Government, not directly affecting the value of service.] Reply By Sanjeev Chauhan: The Reply: Thanks a lot Sir. Reply By MANDAVILLI RAMAKRISHNA: The Reply: if and only if, you ....
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....credited the interest collected account then no need to pay ST if you credit Misc. receipts or other income account, you have to pay ST<br> Discussion Forum - Knowledge Sharing ....