Customs Broker association membership becomes mandatory in the operating jurisdiction, with exclusive membership and limited compliance-time relaxatio...
Penalty recovered from contractors for not completing work within stipulated time does not constitute consideration for declared service u/s 66E(e) of Finance Act, 1994, as it is merely a penalty imposed for non-fulfillment of contractual condition, not consideration towards any service. Consideration recovered from employees for not serving notice period before leaving job does not attract service tax u/s 66E(e), as employer merely facilitated employee's sudden exit upon compensation, not rendering any taxable service. Demand for service tax on such penalties/recoveries is unsustainable and set aside by the Appellate Tribunal.
Penalty recovered from contractors for not completing work within stipulated time does not constitute consideration for declared service u/s 66E(e) of Finance Act, 1994, as it is merely a penalty imposed for non-fulfillment of contractual condition, not consideration towards any service. Consideration recovered from employees for not serving notice period before leaving job does not attract service tax u/s 66E(e), as employer merely facilitated employee's sudden exit upon compensation, not rendering any taxable service. Demand for service tax on such penalties/recoveries is unsustainable and set aside by the Appellate Tribunal.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 4778
Join Channel
TaxTMI 
