SC Judgment on Credit Card Interchange Fees- A Roleplay - Taxsutra Reservoir

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SC Judgment on Credit Card Interchange Fees- A Roleplay

by Taxsutra
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Categories: Legal Battlefield
Publisher: Taxsutra
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Episode Duration:
55 minutes

Episode Background:
After a 3-day long hearing argued by Sr. Advocate Arvind Datar and ASG Balbir Singh, the judges on the Division Bench of the Hon'ble Supreme Court agreed that interchange fee is a taxable service covered by the taxing entry for credit card services and under the negative list; however, dissented on certain aspects [TS-542-SC-2021-ST]. The dissenting judgment of Justice Bhat highlights certain interesting positions in law while applying the same to a complex transaction that takes place on the technological platform of a card network (Visa, Mastercard etc.). On the other hand, both judges agree that once tax is already paid on interchange fees in the hands of the acquiring bank, it cannot once again be taxed in the hands of the issuing bank since that would lead to double taxation.

While the final word on this issue of whether interchange fees is taxable in the hands of the issuing bank is yet awaited from a third / larger bench, the judgment provides necessary guidance on the requisite evidence that issuing banks would be well-advised to maintain.

What shall the episode cover?
Against this backdrop, Taxsutra and Economic Laws Practice (ELP) present an episode on “Supreme Court Judgment on Credit Card Interchange Fees - A Roleplay". In this episode, ELP Partner Mr. Nishant Shah and Associate Partner Ms. Sweta Rajan shall:
 

Key Highlights

  1. Thoroughly dissect the issues/impact of the aforesaid ruling
  2. Share their first-hand experience of appearing during the hearings alongside Sr. Advocate Arvind Datar
  3. Discuss the challenges that face issuing banks - viz. key issues, arguments advanced by the assessee and the service tax department, the potential consequences of the judgment on similar demands raised on other banks under BFS, CCS and the Negative list regime.
Author: Taxsutra
About Publisher:

Taxsutra is considered the most credible source of tax news in the tax fraternity. What started as a fledgling start-up has now become a leading brand in the tax world not only in India, but across the globe. Taxsutra's diverse customer set includes Fortune 500 Companies, large Indian Business Groups, Global Conglomerates, Tax Judges, IRS Officers, CBDT, Tax Lawyers & thousands of tax practitioners.

Taxsutra suite of portals : 

1. Real time tax news & analysis for Corporate Tax (www.taxsutra.com/dt
2. Transfer Pricing Portal (www.taxsutra.com/tp)
3. GST and Central Indirect Taxes Portals (www.taxsutra.com/gst - www.idt.taxsutra.com)
4. "Taxsutra Database" - Powerful Online Direct Tax Reference and Search Tool (www.database.taxsutra.com)
5. LawStreetIndia (LSI) (www.lawstreetindia.com) contains sub-modules on Company law, Securities law (SEBI/SAT), FEMA, IP laws & Competition Law 
6.  Taxsutra Accounting Standards portal (Ind-AS) (www.greentick.taxsutra.com)

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Overall Rating
Review
Categories: Legal Battlefield
Publisher: Taxsutra
About Course:

Episode Duration:
55 minutes

Episode Background:
After a 3-day long hearing argued by Sr. Advocate Arvind Datar and ASG Balbir Singh, the judges on the Division Bench of the Hon'ble Supreme Court agreed that interchange fee is a taxable service covered by the taxing entry for credit card services and under the negative list; however, dissented on certain aspects [TS-542-SC-2021-ST]. The dissenting judgment of Justice Bhat highlights certain interesting positions in law while applying the same to a complex transaction that takes place on the technological platform of a card network (Visa, Mastercard etc.). On the other hand, both judges agree that once tax is already paid on interchange fees in the hands of the acquiring bank, it cannot once again be taxed in the hands of the issuing bank since that would lead to double taxation.

While the final word on this issue of whether interchange fees is taxable in the hands of the issuing bank is yet awaited from a third / larger bench, the judgment provides necessary guidance on the requisite evidence that issuing banks would be well-advised to maintain.

What shall the episode cover?
Against this backdrop, Taxsutra and Economic Laws Practice (ELP) present an episode on “Supreme Court Judgment on Credit Card Interchange Fees - A Roleplay". In this episode, ELP Partner Mr. Nishant Shah and Associate Partner Ms. Sweta Rajan shall:
 

Key Highlights

  1. Thoroughly dissect the issues/impact of the aforesaid ruling
  2. Share their first-hand experience of appearing during the hearings alongside Sr. Advocate Arvind Datar
  3. Discuss the challenges that face issuing banks - viz. key issues, arguments advanced by the assessee and the service tax department, the potential consequences of the judgment on similar demands raised on other banks under BFS, CCS and the Negative list regime.
Author: Taxsutra
About Publisher:

Taxsutra is considered the most credible source of tax news in the tax fraternity. What started as a fledgling start-up has now become a leading brand in the tax world not only in India, but across the globe. Taxsutra's diverse customer set includes Fortune 500 Companies, large Indian Business Groups, Global Conglomerates, Tax Judges, IRS Officers, CBDT, Tax Lawyers & thousands of tax practitioners.

Taxsutra suite of portals : 

1. Real time tax news & analysis for Corporate Tax (www.taxsutra.com/dt
2. Transfer Pricing Portal (www.taxsutra.com/tp)
3. GST and Central Indirect Taxes Portals (www.taxsutra.com/gst - www.idt.taxsutra.com)
4. "Taxsutra Database" - Powerful Online Direct Tax Reference and Search Tool (www.database.taxsutra.com)
5. LawStreetIndia (LSI) (www.lawstreetindia.com) contains sub-modules on Company law, Securities law (SEBI/SAT), FEMA, IP laws & Competition Law 
6.  Taxsutra Accounting Standards portal (Ind-AS) (www.greentick.taxsutra.com)

Similar Books

Ratings and Reviews

Overall Rating
Review
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