Levy of service tax - Notice pay compensation - amounts received ...

Case Laws Service Tax

January 24, 2022

Levy of service tax - Notice pay compensation - amounts received or recovered by the employer from its employees for resigning from the service - If the employer decides to terminate the services without giving the required notice, the employment contract itself provides for a compensation to be paid. Similarly, if the employee resigns without notice, compensation is paid by the employee or recovered from his dues. Both the notice period and the compensation are incorporated in the employment contact itself but these are not the purpose of the contract. Consequently, any compensation paid is not a consideration for the contract. - AT

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Levy of service tax - Notice pay compensation - amounts received ...

Case Laws Service Tax

January 24, 2022

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