declared service

[Dalia Felix]

dear all

Have you started paying service tax on the liquidated damage collected from service providers or suppliers? Do you really think that service tax is required to be paid by the service receiver company? Is there any difference in approach in both these cases (service provider, supplier)

AI Summary

Service Tax on Liquidated Damages: Payment Obligations Under Section 66 E of the Finance Act Discussed A discussion forum participant inquired about the obligation to pay service tax on liquidated damages collected from service providers or suppliers, questioning whether the service receiver company should pay this tax. A respondent referred to Section 66 E of the Finance Act for guidance and confirmed that their clients are indeed paying service tax on liquidated damages. Additionally, the Service Tax Department has begun issuing show cause notices to assessees regarding this matter.