https://www.taxtmi.com/highlights?id=102096 Taxability of amounts recovered for breach or deficient performance under the declared service of agreeing to tolerate an act requires a contractual agreement to tolerate the act for consideration. Damages, forfeitures, compensation or adjustments lacking a service nexus remain compensatory and are not taxable consideration. The notes also state that industrial-estate infrastructure services provided to a governmental authority may qualify for exemption where the authority performs municipal-type functions and the works are not predominantly commercial. Road-work components in composite contracts may remain excluded or exempt based on their distinct nature. Extended limitation requires deliberate suppression with intent to evade tax; a dispute arising from disclosed records and differing legal interpretations does not justify the extended period, interest or penalties. en-us Mon, 27 Jul 2026 08:27:45 +0530 Mon, 27 Jul 2026 08:27:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=102096 Taxability of amounts recovered for breach or deficient performance under the declared service of agreeing to tolerate an act requires a contractual agreement to tolerate the act for consideration. Damages, forfeitures, compensation or adjustments lacking a service nexus remain compensatory and are not taxable consideration. The notes also state that industrial-estate infrastructure services provided to a governmental authority may qualify for exemption where the authority performs municipal-type functions and the works are not predominantly commercial. Road-work components in composite contracts may remain excluded or exempt based on their distinct nature. Extended limitation requires deliberate suppression with intent to evade tax; a dispute arising from disclosed records and differing legal interpretations does not justify the extended period, interest or penalties. Highlights Service Tax Mon, 27 Jul 2026 08:27:45 +0530 https://www.taxtmi.com/highlights?id=102096