Clarification of CBEC-Commitment charges recovered by banks liable to service tax

0 comments Sunday, February 19, 2012

CBEC has issued following clarification relating to taxability of commitment charges recovered by banks for keeping available the undistributed balance of a loan committment,  under the Banking and Financial service. 

It has been clarified that commitment charges charged by banks is liable to service tax as these are not in the form of interest but they are directly linked to the provision of service provided by the banks under the Banking and Financial Service covered by section 65(105)(zm) of Finance Act, 1994.
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CBDT exempts salaried persons upto 5 lakh income from return filing in A.Y 2012-13

NOTIFICATION NO 9/2012, Dated: February 17, 2012

In exercise of the power conferred by sub-section (IC) of section 139 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby exempts the following class of persons, subject to the conditions specified hereinafter, from the requirement of furnishing a return of income under sub-section (1) of section 139 for the assessment year 2012-13, namely:-
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