Bona fide disclosure requirements govern under-reporting penalties, and post-penalty immunity applications cannot secure available statutory protectio...
Certificate-of-origin verification procedure governs preferential customs benefits; denial without retroactive verification was set aside with consequ...
Disciplinary Committee jurisdiction and mandatory investigation requirements invalidated cancellation of an insolvency professional's registration and...
Retention of seized property survives where recorded reasons support proceeds of crime, while stayed investigation periods are excluded from limitatio...
Taxability of amounts recovered for breach or deficient...
Contractual tolerance requires consideration; breach recoveries, qualifying public infrastructure services and road works escape service tax liability.
Contents
Summary
Note
Bookmark
Share
✓ Copied successfully !
Print
Print Options
For full text, please login
Login to TaxTMI
Verification Pending
The Email Id has not been verified. Click on the link we have sent on
Taxability of amounts recovered for breach or deficient performance under the declared service of agreeing to tolerate an act requires a contractual agreement to tolerate the act for consideration. Damages, forfeitures, compensation or adjustments lacking a service nexus remain compensatory and are not taxable consideration. The notes also state that industrial-estate infrastructure services provided to a governmental authority may qualify for exemption where the authority performs municipal-type functions and the works are not predominantly commercial. Road-work components in composite contracts may remain excluded or exempt based on their distinct nature. Extended limitation requires deliberate suppression with intent to evade tax; a dispute arising from disclosed records and differing legal interpretations does not justify the extended period, interest or penalties.
Taxability of amounts recovered for breach or deficient performance under the declared service of agreeing to tolerate an act requires a contractual agreement to tolerate the act for consideration. Damages, forfeitures, compensation or adjustments lacking a service nexus remain compensatory and are not taxable consideration. The notes also state that industrial-estate infrastructure services provided to a governmental authority may qualify for exemption where the authority performs municipal-type functions and the works are not predominantly commercial. Road-work components in composite contracts may remain excluded or exempt based on their distinct nature. Extended limitation requires deliberate suppression with intent to evade tax; a dispute arising from disclosed records and differing legal interpretations does not justify the extended period, interest or penalties.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 4784
Join Channel
TaxTMI 
