Working-capital adjustment determines whether software-services transfer-pricing margins fall within the statutory tolerance range, eliminating any ad...
Permanent establishment deductions upheld for expatriate salaries, direct costs and trading losses, while head-office costs require fresh classificati...
Data transmission equipment classification under CTSH 8517 62 remains distinct from residual classification, with exemption evidence requiring scrutin...
Liquidated damages and penalty clauses for delayed contractual performance are compensatory consequences of breach, not consideration for a consensual service of tolerating an act under the declared service provisions. Taxability requires a bilateral arrangement under which one party agrees, for consideration, to refrain from an act, tolerate a situation, or do an act; here, the contract merely imposed a financial consequence for default and did not create an independent agreement to tolerate delay. The Tribunal therefore treated recovery of liquidated damages from suppliers for delayed delivery as non-taxable and upheld the order setting aside the service tax demand.
Liquidated damages and penalty clauses for delayed contractual performance are compensatory consequences of breach, not consideration for a consensual service of tolerating an act under the declared service provisions. Taxability requires a bilateral arrangement under which one party agrees, for consideration, to refrain from an act, tolerate a situation, or do an act; here, the contract merely imposed a financial consequence for default and did not create an independent agreement to tolerate delay. The Tribunal therefore treated recovery of liquidated damages from suppliers for delayed delivery as non-taxable and upheld the order setting aside the service tax demand.
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