TaxTMI 
TaxTMI 
TaxTMI 
LIQUIDATED DAMAGES RECEIVED FROM THE BUYER SERVICE TAX LIABILITY
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....IQUIDATED DAMAGES RECEIVED FROM THE BUYER SERVICE TAX LIABILITY<br> Query (Issue) Started By: - muthu kumaran.vp Dated:- 20-5-2016 Last Reply Date:- 24-5-2016 Service Tax<br>Got 8 Replies<br>Service Tax<br>Sir I have doubt on liquidated damages. One of my client received Purchase order from the buyer for an amount of ₹ 1,00,000. Based on PO, my client (seller) purchased the raw material an....
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....d processed the same and manufactured the goods. Now, buyer does not want to buy these manufactured goods and instead buyer promised to pay liquidated damage of ₹ 60,000 for loss occurred to the seller. Now, whether the amount received from the buyer falls under liquidated damages definition?, if so, whether do we need to pay service tax on this. My client (seller) is a manufacturing company....
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.... and does not provide any services. Reply By KASTURI SETHI: The Reply: Sh.Kumaran VP Ji, It is declared service under Section 66 (E)(e) of the Finance Act. In order to avoid repetition, please go through the detailed replies against Issue ID No.107261 dated 2.9.14 and ID No.110337 dated 11.5.2016. Reply By muthu kumaran.vp: The Reply: Thank you sir Reply By Ganeshan Kalyani: The Reply: Sir....
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.... i remember well that there was healthy discussion on the subject in recent pass. Thanks. Reply By surya narayana: The Reply: Dear Kasturi Ji, You are exactly right and on similar query different views expressed to arrive at the right clarification. Further, I wish to say that of late , it is being observed that similar issues are raised by various friends though clarifications on such issue/s....
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.... were given earlier. Through this mail, I humbly request all the friends to kindly check the contents of the queries in the FORUM before raising their query to avoid the repetition and also to save the precious time of both the queriest and the experts who post their views. Best Regards Suryanarayana Reply By KASTURI SETHI: The Reply: Sh.Surya Narayana Ji, Reply By KASTURI SETHI: The Reply: ....
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.... Sir, Some querists do not know how to search and most are not regular visitors. So query is repeated. Reply By Ganeshan Kalyani: The Reply: Sir what I think is that querist know very well that indirect taxation is a dynamic subject. What was appplicable yesterday may not be appplicable today. And what is applicable today may not applicable tomorrow. Hence they are approaching our clinic of taxa....
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....tion under banner TMI where we Tax Doctors render our valuable Consultation with updated medicine of Law which cures their problem. And the fact is we are providing service free of cost. Thanks. Reply By KASTURI SETHI: The Reply: Sh.Ganeshan Kalyani Ji, Sir, I agree with you entirely. Reply on this issue remains the same. You are absolutely right that how the querist can come to know whether t....
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....he old reply is still valid or not. Only if we refer to the earlier reply, only then he would be sure about the validity of the earlier reply. One thing more to point out is that I refer to the already filed reply only if it is still valid. I appreciate your minute observation and the drafting which is full of similes.<br> Discussion Forum - Knowledge Sharing ....