TaxTMI 
TaxTMI 
2013 (12) TMI 855
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....le executing the sale of such securitized loans assignment agreements were signed by the applicant with the buyer to give to the buyer all rights, title and interest in the assets sold. At the time signing the deed of assignment for sale of assets, agreements were also executed between the buyer of the assets and the applicant appointing the applicant as a "Collection Agent" of future receivables from the obligors who availed the loans from the applicant. 2. The scrutiny of the books of accounts for the period 2007-08 to 2009-10 showed that the expenditure incurred by the applicant for doing such collection activity accounted in the books of accounts of the applicant was 26.96 crores for the said period. According to Revenue this amount th....
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....is to their account. 4. The learned Special Counsel for Revenue places on record the Collection Agreement executed between the applicant with ICICI bank which was one of the parties to which such assets were sold. He drew attention to para 2.2 of the agreement which states that a fee of Rs.100/- has been paid for the entire service to be rendered under the agreement and the same is acknowledged by the applicant. Similar agreements with other parties show fees ranging from Rs.100/- to Rs.10000/- towards fees for the services under the agreements appointing the applicant as Collection Agent. He draws attention to the various clauses of the agreements to stress the onerous services rendered under the agreement and his argument is that the sma....
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....eel that this agreement helps in understanding the nature of transaction. We are reproducing classes 2.01 to 2.04 of the said agreement below:- "APPOINTMENT OF COLLECTION AGENT 2.01 The Assignee hereby appoints the Collection Agent for the purpose of collecting and receiving payment of the Receivables and to provide certain other services in relation thereto and the Collection Agent has agreed to be so appointed on the terms and conditions hereinafter agreed. 2.02 The Assignee shall pay Collection Management Fees computed on the opening principal at the beginning of each month @1.15% p.a. payable monthly. The fees payable is subject to applicable service tax to be borne by the assignee. The collection management fee shall be paid by the ....