Citibank — Illegal Service Tax on Citibank Credit Card Loan

Address:

560045

Hi,

I have been a credit card customer of Citibank for more than 10 years now. I always considered citi as one of the best banks in India, but my opinion is changing looking at the recent ways of the bank.

I have been told that my loan on credit card (Enhanced Pay Lite Top Up loan) would attract a service tax of 14% on the interest amount. Imagine a situation where I am already paying 14% interest on loan and on top of that I have been told to pay another 14% tax. Is not that double taxation? Also, as per them, the govt is asking for it for all amounts converted to EMIs. I had taken a loan and had not bought any consumer electronics and converted the amount to EMIs. If this above logic given by bank applies to my loan, then all the personal loans, home loans, commercial loans should also attract the ST. But, not the case with those loans.

I am clearly feeling cheated since I will have to pay a hefty amount as ST on the loan I had taken on the credit card. Please avoid double taxation on the loan and revert the amount you have charged last month.

Details:
Name: Mohammad Jaffer Nayeem
CC No.: 4386 XXX0 XXXX XX23

I am reachable at [protected]@gmail.com / [protected]@yahoo.com.

If this is not resolved, I am planning to take the ombudsman / judicial route for redressal.