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ST on compensation

Service Tax - Started By: - Mangesh khedkar - Dated:- 5-10-2015 Last Replied Date:- 11-10-2015 - Dear sir,pls. suggest service tax will be applicable or not on compensation of erection work - Reply By Rajagopalan Ranganathan - The Reply = Sir, According to Section 66E (e) of Finance Act, 1994, 'Declared services' means agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act. Before answering your query I would like to know why compensation .....

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iled by Sh.Ranganathan and M/s.YAGAY and SUN. Moreover, both of you file replies quickly and accurately. - Reply By YAGAY AND SUN - The Reply = Dear Kasturi Sir,Thanks for the appreciation. Under your guidance we will learn more.Regards,YAGAY and SUN - Reply By Rajagopalan Ranganathan - The Reply = Dear Kasturi Sir,Thank you for your complements. - Reply By Dhruva Advisors LLP - The Reply = Good Morning.While on a plain reading it appears that the compensation or liquidated damages for late deli .....

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or services) it self gets reduced and there may not be a a levy of service tax. RegardsSrinath - Reply By YAGAY AND SUN - The Reply = Yes, It is settled Legal Position that Excise Duty is not payable on LD. Therefore, such LDs compensations are prone to Service Tax. - Reply By Mahir S - The Reply = Sir,Yes sir, declared services relates to carrying/non carrying out any act for consideration, as explained above.In your case, however, If the compensation part has already suffered service tax there .....

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uffered service tax thereon, then in such case it shall not fall again under the declared services.Further, the reason and grounds for such compensation shall decide and guide about the leviability under declared services or otherwise. There may be sufficient ground for not falling under such services depending upon the nature of the contract. etc.Sir,Yes sir, declared services relates to carrying/non carrying out any act for consideration, as explained above.In your case, however, If the compen .....

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e, however, If the compensation part has already suffered service tax thereon, then in such case it shall not fall again under the declared services.Further, the reason and grounds for such compensation shall decide and guide about the leviability under declared services or otherwise. There may be sufficient ground for not falling under such services depending upon the nature of the contract. etc.Sir,Yes sir, declared services relates to carrying/non carrying out any act for consideration, as ex .....

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for consideration, as explained above.In your case, however, If the compensation part has already suffered service tax thereon, then in such case it shall not fall again under the declared services.Further, the reason and grounds for such compensation shall decide and guide about the leviability under declared services or otherwise. There may be sufficient ground for not falling under such services depending upon the nature of the contract. etc.Sir,Yes sir, declared services relates to carrying .....

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