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    <title>Service tax on Compensation</title>
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    <description>The declared service covers agreements to refrain from an act, to tolerate an act or situation, or to do an act; where such agreement is supported by consideration it falls within the declared service and may attract service tax. The text raises two questions-taxability of compensation for customer order cancellations and taxability of recoveries from employees for short notice-and records divergent practitioner views on threshold exemption and on treating employee recoveries as taxable consideration, with the enquirer noting the taxable-limit is exceeded.</description>
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      <description>The declared service covers agreements to refrain from an act, to tolerate an act or situation, or to do an act; where such agreement is supported by consideration it falls within the declared service and may attract service tax. The text raises two questions-taxability of compensation for customer order cancellations and taxability of recoveries from employees for short notice-and records divergent practitioner views on threshold exemption and on treating employee recoveries as taxable consideration, with the enquirer noting the taxable-limit is exceeded.</description>
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