Notice Pay Not Subject to Service Tax: Compensation Not Considered 'Consideration' Under Contract Law.

Levy of service tax - consideration received on account of ‘notice pay’ from the employees - the amount received as compensation by the appellants cannot be equated with the term ‘consideration’ inasmuch as the latter is received for performance under the contract; whereas, the former is received, if the other party fails to perform as per the contractual norms. - AT .....

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