https://www.taxtmi.com/highlights?id=69518 Taxability - Liquidated damages/ penalties recovered - since, collection of such amount is towards delayed completion of work, which is not a regular phenomenon and arises out of non-performance of the contract in the manner prescribed, on rare occasions, it cannot be said that there are sufficient nexus between the parties on a regular basis for payment of such charges in order to abstain in proper performance of the assigned task within the scheduled time frame - such amount should not be equated with ‘consideration’, for the purpose of rendering any taxable service. - AT en-us Mon, 01 May 2023 09:08:16 +0530 Mon, 01 May 2023 09:08:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=69518 Taxability - Liquidated damages/ penalties recovered - since, collection of such amount is towards delayed completion of work, which is not a regular phenomenon and arises out of non-performance of the contract in the manner prescribed, on rare occasions, it cannot be said that there are sufficient nexus between the parties on a regular basis for payment of such charges in order to abstain in proper performance of the assigned task within the scheduled time frame - such amount should not be equated with ‘consideration’, for the purpose of rendering any taxable service. - AT Highlights Service Tax Mon, 01 May 2023 09:08:16 +0530 https://www.taxtmi.com/highlights?id=69518