https://www.taxtmi.com/caselaws?id=795568 Notice-period recovery from employees leaving without serving the stipulated notice does not constitute consideration for a declared service of tolerating an act under the Finance Act, 1994. Taxability requires an activity performed by one person for another for consideration. A stipulated payment permitting premature employment exit only addresses the consequence of an employee's departure; it does not establish that the employer agreed to tolerate an act as a taxable service. The employment arrangement therefore involves no rendition of service by either party in relation to the notice-period recovery, which is not taxable under the declared-service provision. en-us Wed, 22 Jul 2026 00:00:00 +0530 Fri, 24 Jul 2026 08:36:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=795568 Notice-period recovery from employees leaving without serving the stipulated notice does not constitute consideration for a declared service of tolerating an act under the Finance Act, 1994. Taxability requires an activity performed by one person for another for consideration. A stipulated payment permitting premature employment exit only addresses the consequence of an employee's departure; it does not establish that the employer agreed to tolerate an act as a taxable service. The employment arrangement therefore involves no rendition of service by either party in relation to the notice-period recovery, which is not taxable under the declared-service provision. Case-Laws Service Tax Wed, 22 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=795568