https://www.taxtmi.com/article/detailed?id=10613 CBIC Circular No. 178 explains that a payment constitutes a taxable declared service only if there is an express or implied agreement to do, abstain from, or tolerate an act in return for consideration; mere compensation for loss or a unilateral flow of money is not consideration and is not taxable. Ancillary charges naturally bundled with a principal supply are taxed at the principal supply rate, while statutory penalties, cheque dishonour fines, salary forfeitures, and pure forfeiture of earnest money, when not linked to any reciprocal promise, are not taxable. en-us Wed, 17 Aug 2022 08:06:23 +0530 Wed, 17 Aug 2022 08:06:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=10613 CBIC Circular No. 178 explains that a payment constitutes a taxable declared service only if there is an express or implied agreement to do, abstain from, or tolerate an act in return for consideration; mere compensation for loss or a unilateral flow of money is not consideration and is not taxable. Ancillary charges naturally bundled with a principal supply are taxed at the principal supply rate, while statutory penalties, cheque dishonour fines, salary forfeitures, and pure forfeiture of earnest money, when not linked to any reciprocal promise, are not taxable. Articles Goods and Services Tax - GST Wed, 17 Aug 2022 08:06:23 +0530 https://www.taxtmi.com/article/detailed?id=10613