https://www.taxtmi.com/forum/issue?id=107807 Whether an employer's deduction of notice pay from a departing employee is a taxable service or a non-taxable money recovery is contested. Many commentators conclude no service tax applies because the deduction is a contractual salary adjustment/actionable claim lacking a separate service and occurs within the employment relationship. Others contend it could fall within declared services as an agreement to tolerate or refrain from an act, or as an employer-to-employee service, and thus may be taxable; practical questions on invoicing, deposit heads and registration classification remain unresolved and were variously answered. en-us Sun, 04 Jan 2015 22:26:17 +0530 Thu, 23 Jan 2025 15:57:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=107807 Whether an employer's deduction of notice pay from a departing employee is a taxable service or a non-taxable money recovery is contested. Many commentators conclude no service tax applies because the deduction is a contractual salary adjustment/actionable claim lacking a separate service and occurs within the employment relationship. Others contend it could fall within declared services as an agreement to tolerate or refrain from an act, or as an employer-to-employee service, and thus may be taxable; practical questions on invoicing, deposit heads and registration classification remain unresolved and were variously answered. Discussion-Forum Service Tax Sun, 04 Jan 2015 22:26:17 +0530 https://www.taxtmi.com/forum/issue?id=107807