Service Tax on Hire Purchase Transactions - Impact of increase in Service Tax Rate

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..... Service Tax on Hire Purchase Transactions - Impact of increase in Service Tax Rate
News and Press Release
Dated:- 26-8-2008

In the present case: L.F.C. HIRE PURCHASE CO. LTD. Versus COM .....

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..... MISSIONER OF CUSTOMS & CENTRAL EXCISE (APPEALS), COCHIN Reported in 2008 -TMI - 30422 - CESTAT, BANGALORE Hire purchase agreement was entered prior to 14-5-2003 At the time of agreement, rate of se .....

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..... rvice tax was 5%. Rate of service tax enhanced to 8% w.e.f. 14-5-2003. Department raised demand @8% for the amount collected on or after 14-5-2008. Assessee disputed the demand on the ground that t .....

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..... he service tax is levied at the time of provision of services and not at the time receipt of amount for the services provided earlier - Section 68 CESTAT, found the contention of the appellant correc .....

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..... t and set aside the demand. While making the decision, CESTAT has followed the principle evolved from the circular dated 9-7-2001 (See paragraph no. 2.1.4 of part VII of the circular no. F.No.B.11/1/ .....

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..... 2001-TRU, in which CBEC has clarified applicable of service tax on lease or hire purchase transactions)
News - Press release - PIB .....

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