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2013 (3) TMI 409 - Commissioner - Service TaxService tax was paid only on ‘Guarantee Commission’, and not on the ‘Commitment charges’ - Valuation - Rule 6(2) - Held that:- The Board has already clarified that interest would remain excluded from taxable value. Moreover, the appellant has also pointed out that TDS has been deducted on commission under Section 194H and TDS has been deducted on interest under Section 194A of the Income-tax Act, 1961. This shows the difference of the item which is in the nature of commission and which is in the nature of interest. Section 2(28A) of the Income-tax Act, 1961 has clarified as under : “The term interest has been defined in new clause (28A) inserted, in Section 2 of the Income-tax Act with a view to removing doubts about the true character of fees or other charges paid in respect of monies borrowed or in respect of credit facilities which have not been utilized. The definition is very wide and covers interest payable in any manner in respect of loans, debts, deposits, claims and other similar rights or obligations. It also includes any service fees or other charges in respect of such loans, debts, deposits, etc. as also fees in the nature of commitment charges on unutilised portion of credit facilities. In view of the above discussions and also in conformity with the decision in the appellant’s own case for the earlier period by this appellate forum in the very same issue, appeal was allowed.
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