Agreements to refrain from acts treated as taxable service under Section 66E(e), attracting service tax when consideration is received. Agreements under Section 66E(e) that oblige a party, for consideration, to refrain from an act, to tolerate an act or situation, or to do an act are ... Summary
Agreements to refrain from acts treated as taxable service under Section 66E(e), attracting service tax when consideration is received.
Agreements under Section 66E(e) that oblige a party, for consideration, to refrain from an act, to tolerate an act or situation, or to do an act are captured as declared services and constitute a taxable provision of service. Examples include non compete agreements and agreements to forbear from initiating legal proceedings; administrative guidance confirms these activities are treated as services when carried out for consideration.
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