OthersArticle·25 August 2026
CESTAT says an interchange fee issued by the Banker cannot be taxed again
By J the App
Executive Summary
Can the Revenue separately tax the issuing bank on its share of interchange fee when service tax has already been paid on the entire MDR? CESTAT Mumbai says no, following the Supreme Court's final decision in Citi Bank.
The Court held that MDR represents the consideration for the unified credit-card service and that separately taxing the interchange component would result in double taxation. The demands, interest and penalties against HDFC Bank were therefore set aside.
Domain | Indirect Tax | Regulatory | Service Tax | Credit Card Services | Interchange Fee
The Positi...
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