https://www.taxtmi.com/forum/issue?id=109863 Whether cheque return penalty charges collected with a sale invoice constitute a taxable service or form part of the sale consideration. The prevailing view is that such penalty charges, when included in the sales invoice for goods, are incidental to the sale and not a taxable service; involvement of a CFA or agent does not convert the penalty into a service. A counterview suggests the transaction could be characterised as a forbearance obligation attracting tax, but others reject that characterisation on these facts. en-us Thu, 11 Feb 2016 17:36:12 +0530 Thu, 23 Jan 2025 15:56:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=109863 Whether cheque return penalty charges collected with a sale invoice constitute a taxable service or form part of the sale consideration. The prevailing view is that such penalty charges, when included in the sales invoice for goods, are incidental to the sale and not a taxable service; involvement of a CFA or agent does not convert the penalty into a service. A counterview suggests the transaction could be characterised as a forbearance obligation attracting tax, but others reject that characterisation on these facts. Discussion-Forum Service Tax Thu, 11 Feb 2016 17:36:12 +0530 https://www.taxtmi.com/forum/issue?id=109863