Refraining from an act/ tolerating an act / situation

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..... is a new category of activity which has been covered into service tax by this entry. It covers followings activities: Agree to refrain from an act, Agree to tolerate an act, Agree to tolerate a situation and Agree to do an act. All these activities if agreed upon for a consideration, it will cover in this entry and will be liable to service tax. Example of such activities: - Non-compete agreem .....

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..... ; Agreeing to the obligation to do an act. 6.7.1 Would non-compete agreements be considered a provision of service? Yes. By virtue of a non-compete agreement one party agrees, for consideration, not to compete with the other in any specified products, services, geographical location or in any other manner. Such action on the part of one person is also an activity for consideration and will be c .....

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