Declared Services - 66E

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..... Declared Services - 66E
Query (Issue) Started By: - AJAY AGRAWAL Dated:- 29-7-2016 Last Reply Date:- 29-7-2016 Service Tax
Got 3 Replies
Service Tax
In many cases, companies are collecting fines, penalties and liquidated damages from their customers for any deficiency of performance or shortfall of supply/contract. These situations are very common and the amount so collected will for .....

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..... m part other revenue of the company. My question is:- 1. In such case whether Company has to pay Service Tax u/s 66E(e) ? 2. If yes, whether Company has to get / endorsed Sec 66E(e) on registration certificate ? Reply By KASTURI SETHI: The Reply: Dear Sir, Service declared under Section 66 E(e) cannot be endorsed on registration certificate.This activity will fall under,"Other Than Negat .....

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..... ive List". Accounting Code for the category, "Other Than Negative List" is relevant and required to be mentioned on R.C. Regarding the applicability of ST, we have to go through terms and conditions of a particular contract. Reply By Ganeshan Kalyani: The Reply: Sir, Sri Kasturi Sir I topic is very interesting. So many queries are receiving on the subject. I think the Govt will n .....

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..... otice the validity and amend the provision accordingly. Or a representation may be filed to the Govt requesting to issue clarificatory notification in this regard. Thanks. Reply By Rajagopalan Ranganathan: The Reply: Sir, Section 66E (e) of finance Act, 1994 stipulates that agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act is a 'Declare .....

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..... d Service' and the same is taxable unless specifically exempted. Collection of fines, penalties and liquidated damages by a Company from their customers for any deficiency of performance or shortfall of supply/contract is a declared service and hence the same is liable to service tax. Service Tax Registration Certificate merely mentions taxable service provided by registrant and does not elabo .....

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..... rate the services provided by the registrant . Therefore provision of declared service under Section 66E (e) need not be mentioned in the registration certificate.
Discussion Forum - Knowledge Sharing .....

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