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2013 (8) TMI 529 - AT - Service TaxClub or Association Services - holiday and leisure service - collection of room rental from non-members - Interest of installment sales interest on instalment sales was merely interest on delayed payment of membership fees and same cannot be equated with "interest on loan" as referred in Section 67, Service Tax (Determination of Value) Rules, 2006 and Board circular - Held that:- It was reasonable to pay tax on interest on installment sales - Notification No.4/2006-ST payment of tax on amount of ninety percent of interest was exempted on financial leasing including equipment leasing and hire purchase - service tax was payable on the income earned by the assessee by way of interest/finance charges in relation to the taxable service - obligation to pay membership fees alongwith service tax would be at the time of entry. Income from securitization Held that:- Income from securitization was an independent transaction between the bank and the applicant company - income from securitization was the excess of consideration received over and above the principal amount of receivables from the members. Room rental - Held that:- It was possible that the members also paid room rentals for overstaying and booking for their guests - the assesse had not placed the details of room rentals - there was a factual dispute on this issue. Waiver of pre deposit Held that:- Assesse failed to make out a prima facie case for waiver of pre-deposit of entire amount of tax on the major issues namely, "interest on sales" and "room rental" the figures taken from balance sheet on accrual basis whereas service tax had to be paid on receipt basis two crores were ordered to be submitted on such submission rest of the pre deposit of tax penalty and interest to be waived and stay application allowed stay granted partly.
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