TMI BlogNo service tax payable on interest free security deposits taken from customer towards trading of sharesX X X X Extracts X X X X X X X X Extracts X X X X ..... No service tax payable on interest free security deposits taken from customer towards trading of shares - By: - CA Bimal Jain - Service Tax - Dated:- 3-12-2022 - - The CESTAT bench of Ahmedabad ( the Tribunal ) in the case of MARWADI SHARES FINANCE LTD AND KETAN MARWADI VERSUS C.C.E. S.T. -RAJKOT - 2022 (11) TMI 694 - CESTAT AHMEDABAD held that the Service Tax is not liable to be paid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the amount collected from the customer as interest free security deposit against trading of shares which is subsequently refunded without utilization. Facts: Marwadi Shares Finance Ltd. ( the Appellant ) collected sum of money as interest free security deposits towards trading of shares which would be subsequently refunded without utilization. The revenue demanded the service t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax on the security deposit taken by the Appellant on the above transaction. Issue: Whether the Appellant is liable to pay service tax on the deposit taken by the Appellant from their customer as security deposit against towards trading of shares, which would be subsequently refunded without utilization? Held: The Tribunal held that: The Tribunal in the same case of the Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellant in past has passed an MARWADI SHARES FINANCE LTD VERSUS C.C.E. S.T. -RAJKOT - 2022 (4) TMI 705 - CESTAT AHMEDABAD wherein the Tribunal held that Interest free deposits did not represent value of any taxable service. The said deposit amount was kept with the Appellant as security deposit to adjust the amount in case of any default in making payment by the client. The said deposit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount also refundable to client. Therefore, allowing the Appeal filed by the Appellant held that the amount collected by the Appellant as security deposit from its customers towards trading of shares which will be subsequently refunded without utilization would not be liable to Service Tax. (Author can be reached at info@a2ztaxcorp.com ) - - Scholarly articles for knowl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edge sharing authors experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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