SERVICE TAX ON LEASING SERVICES IS APPLICABLE : SUPREME COURT

Posted: 30 Oct 2010 03:45 AM PDT

The Supreme Court has held that banks and financial institutions, including non-banking financial companies, are liable to pay service tax on transactions of leasing and hire purchase of moveable goods. While bringing such services within the service tax net, a Bench headed by chief justice SH Kapadia has upheld the levy of service tax on hire purchase and leasing transactions, notwithstanding that the same transactions are chargeable to the sales tax (now VAT). The decision in effect has...

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