https://www.taxtmi.com/forum/issue?id=107261 Debate centers on whether liquidated damages for delayed supply constitute consideration for a declared service under section 66E(e). One view treats LD as a non taxable penalty; the prevailing analytical view treats commercially agreed LD as pre agreed compensation and therefore consideration attracting service tax. Rule 6(2)(vi)'s exclusion for accidental damages was distinguished from contractual LD. A tribunal authority treating contractually reduced amounts due to delay as transaction value was cited in support of taxability. en-us Tue, 02 Sep 2014 10:04:09 +0530 Thu, 23 Jan 2025 15:57:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=107261 Debate centers on whether liquidated damages for delayed supply constitute consideration for a declared service under section 66E(e). One view treats LD as a non taxable penalty; the prevailing analytical view treats commercially agreed LD as pre agreed compensation and therefore consideration attracting service tax. Rule 6(2)(vi)'s exclusion for accidental damages was distinguished from contractual LD. A tribunal authority treating contractually reduced amounts due to delay as transaction value was cited in support of taxability. Discussion-Forum Service Tax Tue, 02 Sep 2014 10:04:09 +0530 https://www.taxtmi.com/forum/issue?id=107261