TaxTMI 
TaxTMI 
whether compensation received on early completion of work is taxable under service tax and vat . if yes then service tax will calculation considering original work or not
service tax on incentive received for early completion of work
26 Dec 2015 
8 Replies 
6814 Views Asked by
Taxability of incentives: post-performance payments may be includable in service value unless shown to be unlinked prizes.
Whether incentives for early or efficient completion are included in the taxable value depends on their characterization: amounts payable for the service or calculated as part of remuneration fall within the statutory Any Amount and the concept of Consideration and are includable, whereas post-performance prizes demonstrably unlinked to service value may be excluded. (AI Summary)
Whether incentives for early or efficient completion are included in the taxable value depends on their characterization: amounts payable for the service or calculated as part of remuneration fall within the statutory Any Amount and the concept of Consideration and are includable, whereas post-performance prizes demonstrably unlinked to service value may be excluded. (AI Summary)