08/08/2008
No interest tax on lease and financing biz
Giving relief to companies engaged in leasing and financing business, the Income Tax Appellate Tribunal has ruled that they are not required to pay interest tax, applicable to other credit institutions. “Since substantial earnings is made from such (lease financing) activity after employing substantial funds...the assessee would be outside the scope of charging provisions contained in the Act (Interest Tax Act),`` the Mumbai bench of ITAT said, while gi ving a ruling in favour of Shardul Securities. The Bench has set aside the orders of the Assessing Officer and Commissioner of Income tax Appeals in the case, which held that the company should pay interest tax as it is also engaged in loan advancing and investment activities along with lease financi ng.
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30/03/2007
Interest Tax Rules
Interest Tax Rules
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Interest Tax Act
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