Tribunal Rules Non-Compete Clause in Business Transfer Not a Taxable Service; Service Tax Demand Overturned.

Tribunal Rules Non-Compete Clause in Business Transfer Not a Taxable Service; Service Tax Demand Overturned. https://www.taxtmi.com/highlights?id=75056 Declared Service u/s 66 E(e) of FA or not - Business Transfer Agreement (BTA) entered by the Appellant having a non-compete clause - The tribunal held that, Adjudication authority confirmed demand but failed to acknowledge the exemption under Notification No. 25/2012-Service Tax. Non-compete clause was a routine condition for transferring a running business concern. Terms of the agreement must be read as a whole; non-compete clause cannot be separated to bring the transaction under service tax. - Demand set aside. en-us Wed, 21 Feb 2024 07:11:24 +0530 Wed, 21 Feb 2024 07:11:24 +0530 TaxTMI RSS Generator Tribunal Rules Non-Compete Clause in Business Transfer Not a Taxable Service; Service Tax Demand Overturned. https://www.taxtmi.com/highlights?id=75056 Declared Service u/s 66 E(e) of FA or not - Business Transfer Agreement (BTA) entered by the Appellant having a non-compete clause - The tribunal held that, Adjudication authority confirmed demand but failed to acknowledge the exemption under Notification No. 25/2012-Service Tax. Non-compete clause was a routine condition for transferring a running business concern. Terms of the agreement must be read as a whole; non-compete clause cannot be separated to bring the transaction under service tax. - Demand set aside. Highlights Service Tax Wed, 21 Feb 2024 07:11:24 +0530 https://www.taxtmi.com/highlights?id=75056