Notice Pay for Sudden Termination Exempt from Service Tax; Not Considered a Service by Either Party.

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....Demand of service tax on Notice pay - Though normally, a contract of employment qua an employer and employee has to be read as a whole, there are situations within a contract that constitute rendition of service such as breach of a stipulation of noncompete. Notice pay, in lieu of sudden termination however, does not give rise to the rendition of service either by the employer or the employee.....