Legal Question in Banking Law in India

Dear Sir/Madam,

I am using ICICI bank credit card.

I am having due outstamdng of 1,04,000 rupess. my credit limit is 74,000.

Every month i am paying the minimum amount due.

Bank is charging me service service tax of 12.3% on interest charges.

there are also charging me overlimit charge + Service tax+late payment + service tax

Can bank charge the service tax on interest amount? is it legal


Asked on 11/02/11, 11:22 pm

3 Answers from Attorneys
RAJIV GUPTA (Cell: +91 9811284735) [email protected]

you may file a complaint in the consumer forum.

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Answered on 11/03/11, 1:24 am
Rajiv Chandhok Ph: +919810050896 https://www.linkedin.com/in/rajiv-chandok-0827b733/

The Supreme Court has held the validity of service tax being charged by banks on interest. You may challenge the heavy interest rates being charged to you in the MRTP commission but not at all in the consumer forum.

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Answered on 11/03/11, 5:51 am
a.manoharan a.manoharan a.manoharan

it is depending on the contract between bank and customer. every particular time , the A/c is sent to the concerned borrower and usually there is a specific clause informing that any discrepancy has to be claimed within particular time or else , thereafter the said a/c holder can not claim subsequently.

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Answered on 11/03/11, 9:56 am


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