The untold story of the Rs45,000 crore service tax claim on banks
As lenders will not be able to pass on costs, from now on, banking will be a costly affair
For a moment, let’s presume the Indian government has signed off the privatization plan of national carrier Air India. Four investment bankers chosen for the deal have done a fantastic job in finding out the right suitor. Like most public sector mandates, they have done it free for prestige, moving up the league table and brushing shoulders with the government (not necessarily in this order). After the celebrations get over, all four get notices from India’s tax authorities, asking them to pay goods and services tax, or GST, on their fees that never were.