Service tax on loan foreclosure penalty.

Skeptical optimist (Querist) 17 June 2017 This query is : Resolved
I have foreclosed a home loan by prepaying lump-sum foreclosure penalty. The receipt does not explicitly mention how much of this amount is towards service tax, and other cesses (levied on foreclosure penalty) IF ANY. It just says that, "The amount is inclusive of the service tax, education cess etc. wherever applicable".

Is it permissible to collect service tax without 'explicitly' mentioning corresponding amount in the receipt. Else it is likely that amount collected in name of service tax may not be submitted to Income Tax department.

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S.B.adil rahman (Expert) 18 June 2017
File a complaint with the Nodal officer of RBI requesting him to order to provide the the break up of the money taken from you but before that you ask your bank in writing. Being dissatisfied you can file a case in consumer forum against unfair trade practice and deficient services of your ban.

krishna mohan (Expert) 19 June 2017
ST not payable to Income Tax authorities. I am of the view if you have paid and settle the issue which is inclusive of ST, you can leave it. It may be possible if you ask for break up you may end up paying higher rate of tax in GST.

Rajendra K Goyal (Expert) 19 June 2017
Generally Banks quote actual service charges / rates which includes service tax and also mention it.

You can ask bifurcation from Bank.

Kumar Doab (Expert) 19 June 2017
Write to lender under proper acknowledgment to provide you with break-up and attach the copy of receipt issued to you.