Levy of service tax - forfeiture of earnest money and retention ...

Service Tax

November 18, 2021

Levy of service tax - forfeiture of earnest money and retention of compensation / liquidation damage for not delivery of purchased goods by the other party - declared service or not - The only purpose is for minium compensation and of forfeiting the earnest money is to ensure that the default act is not undertaken again or repeated. However, from any stretch of imagination the retention of such amount cannot be said to be an act of receiving consideration that too towards toleration of the defaulting act of the other parties. - No demand - AT

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Levy of service tax - forfeiture of earnest money and retention ...

Service Tax

November 18, 2021

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THE GOODS AND SERVICES TAX (COMPENSATION TO STATES) AMENDMENT BILL, 2018

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