TaxTMI 
TaxTMI 
Service tax on Compensation
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....ervice tax on Compensation<br> Query (Issue) Started By: - A Wilson Dated:- 16-4-2015 Last Reply Date:- 20-4-2015 Service Tax<br>Got 3 Replies<br>Service Tax<br>Dear Sirs, Effective date: 1.7.2012 Scope of Declared Service Section 66E (e) Agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act. Analysis: This is a new category of activity whic....
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....h has been covered into service tax by this entry. It covers followings activities: Agree to refrain from an act, Agree to tolerate an act, Agree to tolerate a situation and Agree to do an act. All these activities if agreed upon for a consideration, it will cover in this entry and will be liable to service tax. Pls refer the above declared service and give your expert opinion on the following....
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.... : * Applicability of service tax on compensation from the customer for order cancellation for supply of goods * Applicability of service tax on Recovery from employee for short notice period Best Regards, A.Wilson Reply By Rajagopalan Ranganathan: The Reply: Sir, I do not think the gross amount charged for the above activities during the previous financial year or during the current yea....
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....r will exceed ₹ 10 lakhs. Therefore there will be no need to pay service tax. Reply By mahim dangi: The Reply: Hi A Wilson, I am not sure about the 1st issue but in 2nd case you have to collect service tax from the employee Reply By A Wilson: The Reply: Dear Sirs, Thank you very much for your reply. Our total taxable limit already exceeds the basic limit. Pls give your expert opinion f....
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....or the applicability of service tax on compensation for agreed order cancelled. Thx. A.Wilson<br> Discussion Forum - Knowledge Sharing ....