Service tax on Compensation

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..... Dear Sirs, Effective date: 1.7.2012 Scope of Declared Service Section 66E (e) Agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act. Analysis: This 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, .....

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..... 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. Pls refer the above declared service and give your expert opinion on the following : Applicability of service tax on compensation from the customer for order cancellation for supply of goods Applicability of serv .....

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..... ice tax on Recovery from employee for short notice period Best Regards, A.Wilson - Reply By Rajagopalan Ranganathan - The Reply = Sir, I do not think the gross amount charged for the above activities during the previous financial year or during the current year will exceed ₹ 10 lakhs. Therefore there will be no need to pay service tax. - Reply By mahim dangi - The Reply = .....

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..... Hi A Wilson, I am not sure about the 1st issue but in 2nd case you have to collect service tax from the employee - Reply By A Wilson - The Reply = Dear Sirs, Thank you very much for your reply. Our total taxable limit already exceeds the basic limit. Pls give your expert opinion for the applicability of service tax on compensation for agreed order cancelled. Thx. A.Wilson - Service tax on .....

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..... Compensation - Query Started By: - A Wilson Dated:- 16-4-2015 Service Tax - Got 3 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

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