TaxTMI 
TaxTMI 
Whether Service tax is chargeable on Liquidated Damages being charged from supplier of goods due to late delivery of material . Liquidated Damages can be covered by "Agreeing to the obligation to tolerate an act or a situation " entry in notification on declared Services . Does it matters Whether Vendor is a Foreign vendor having or not having any agent in india.
Applicability Of Service tax on Liquidated Damages
27 Aug 2016 
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Service tax on liquidated damages treated as taxable under declared service, subject to factual exceptions and pending tribunal review.
Service tax is collectible on fines, penalties and liquidated damages arising in the course of providing a service as falling within the Declared Service under Section 66E(e), while services by government or local authorities are treated separately under departmental clarification; factual circumstances and pending tribunal adjudication determine applicability in individual cases. (AI Summary)
Service tax is collectible on fines, penalties and liquidated damages arising in the course of providing a service as falling within the Declared Service under Section 66E(e), while services by government or local authorities are treated separately under departmental clarification; factual circumstances and pending tribunal adjudication determine applicability in individual cases. (AI Summary)