HDFC Bank — Charged service tax on interest component on emi purchases and none of the banks do the same | |||
This is regarding my hdfc credit card 3608 xxxxxx 3079 statement for june 2015 in which a service tax of 165.64 and cess tax is charged. I have emi's running in citi bank and hsbc bank. These banks never charged any service tax on interest. I am only paying the emi amount. Also they are ready to give loan on card and without any service tax on the interest. I can share you my credit card bill with you if you want. What i don't understand is are there govt guidelines only for hdfc bank. I feel posing service tax on interest is not a good way as we are already paying the interest and the meaning of emi itself is the monthly installment including everything.Hdfc is not giving any reason till date why they charge this. Hdfc bank is the only bank doing this, at least in the banks that i have come across.No bank charges anything for a merchant emi. I request hdfc to revert this charges on the emi transactions which is not a good way to take money from customers. Was this information helpful? | |||
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Hello,
I am very much aware of the service tax appraisal to 14% by Govt. of India and I did not ask about the service tax on my processing fee. However, I clearly mentioned that you are charging service tax on interest component in the EMI for each month here after. How many times I need to tell you regarding my query. How can you respond this way with out getting my actual question. Below are the merchant EMI's for this month in my statement. You can see in the below transactions that you have charged an amount of Rs. 9.5788 for the first Merchant EMI and an amount of 61.43 for the second Merchant EMI. Should I explain more? You are not supposed to charge any other amount except the EMI and the EMI interest. None of the banks are charging this service tax on the interest. I want to raise this issue and so I raised my concern in the consumercourt. You will be charging this for every EMI and every month here after which you are not supposed to do. Please revert the service tax on interest.
MER EMI 1 495.71
MER EMI 1 INT 68.42
MER EMI 1 SERVICE TAX 9.5788
MER EMI 2 SERVICE TAX 61.43
MER EMI 2 INT 429.81
MER EMI 2 3113.85
I am very much aware of the service tax appraisal to 14% by Govt. of India and I did not ask about the service tax on my processing fee. However, I clearly mentioned that you are charging service tax on interest component in the EMI for each month here after. How many times I need to tell you regarding my query. How can you respond this way with out getting my actual question. Below are the merchant EMI's for this month in my statement. You can see in the below transactions that you have charged an amount of Rs. 9.5788 for the first Merchant EMI and an amount of 61.43 for the second Merchant EMI. Should I explain more? You are not supposed to charge any other amount except the EMI and the EMI interest. None of the banks are charging this service tax on the interest. I want to raise this issue and so I raised my concern in the consumercourt. You will be charging this for every EMI and every month here after which you are not supposed to do. Please revert the service tax on interest.
MER EMI 1 495.71
MER EMI 1 INT 68.42
MER EMI 1 SERVICE TAX 9.5788
MER EMI 2 SERVICE TAX 61.43
MER EMI 2 INT 429.81
MER EMI 2 3113.85
"We understand that you wish to have clarification on the Service Tax levied towards EMI loans availed on your credit card. In this regard, we once again wish to inform that Service tax at 14% is applicable towards Interest component of EMI of loans also.The information regarding the same will be clearly present in the card usage guide and the amortization schedule sent to you post availing the EMI loans on your credit card. As informed in our earlier response, we once again wish to inform that HDFC Bank can not comment on the operating procedures followed at other banks."
Is this the way bank responds ? I know that you have mentioned in your schedule. But how are you different from other banks? Are they not paying service tax to the govt. ? I have 4 credit cards and HDFC is the only bank who is doing this cheap trick. How do you justify that you are exception to other banks. I have also sent you the statement of CITI bank. I want to know how HDFC is different ?
Is this the way bank responds ? I know that you have mentioned in your schedule. But how are you different from other banks? Are they not paying service tax to the govt. ? I have 4 credit cards and HDFC is the only bank who is doing this cheap trick. How do you justify that you are exception to other banks. I have also sent you the statement of CITI bank. I want to know how HDFC is different ?
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I would request you to email us at [protected]@hdfcbank.com along with your above mentioned details, charges details, card details, contact details and your concerns. Kindly mention Ref ID- TTU[protected] in the subject line. Will revert to you on priority.
-Tejal
HDFC Bank