Service Tax on Recovery of Notice Pay

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..... Service Tax on Recovery of Notice Pay
Query (Issue) Started By: - Bhairob Chandra Bor Dated:- 11-8-2014 Last Reply Date:- 12-8-2014 Service Tax
Got 2 Replies
Service Tax
Dear Exparts, as .....

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..... per service agreement we recover the notice pay from the employees who leaves the company with a short notices. In this case is the company liable to pay service tax as per the service tax rules? if .....

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..... applicable kindly advice sections/rules in which it is mentioned. please also advice what will be in case of notice pay paid by company to its employees. Kindly advice. Kind Regards. BCB Reply By P .....

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..... radeep Khatri: The Reply: Dear Bhairob, There is no such provision in the Finance Act, 1994 read with Service Tax Rules made thereunder. Service provided to employee by employers and recovery of Not .....

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..... ice Period amount from the employees who do not serve it does not come under the purview of Finance Act, 1994. Hence, in our opinion service tax would not be applicable on such recoveries. Regards T .....

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..... eam YAGAY and SUN (Management and Indirect Tax Consultants) Reply By Rajagopalan Ranganathan: The Reply: Sir, By paying an amount in lieu of Notice the employee is not receiving any service from .....

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..... the employer. Hence no service tax is payable.
Discussion Forum - Knowledge Sharing .....

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