TVS Motor's 'Referral Charges' From Banks Are Taxable, But No Penalty as Tax Was Already Paid: Supreme Court

The Supreme Court has held that referral charges received by TVS Motor Company Limited from banks and an insurance company were taxable as Business Auxiliary Service under the Finance Act, 1994. However, the Court set aside the penalty imposed on the company because the entire tax liability had already been paid before the department issued the show cause notice. Bench Examines Taxability and Penalty A Bench comprising Justice J.B. Pardiwala…