Dispute Over Service Tax on Interest from Metal Loans u/s 66D of Finance Act, 1994.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Demand of service tax on interest - providing metal as loan to the customers - The Revenue is of the opinion that only if the loan is in the form of Indian rupee and interest is earned on that, then alone under the provisions of Valuation Rules or Section 66D of Finance Act, 1994 - There is no provision in the law to hold that interest identified by Valuation Rules or Section 66 is interest only on cash loan. - AT....