Compensation/ damages receivale

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Tulsi kapadiya (Querist)
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10 September 2014 My friend's client has given on rent his commercial premises on which service tax was duly charged and paid to the Government. However the lessee/ tenant had damaged the premises and the furniture given for use, the rent covered all such items he has agreed to vacate the premises for reasonable compensation. The query is that the amount which the ;lessee/ tenant agrees to pay by way of compensation and damages whether such compensation or damages is liable to service tax? If Yes/No under which provision of Service Tax Law.
Your valued opinion shall be highly appreciated by me.
Tulsi Kapadiya

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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10 September 2014 the ans is no as this are not paid for any servie but a compensation which is not servie provided hence outside the purview of servie tax

Tulsi kapadiya

Tulsi kapadiya (Querist)
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10 September 2014 Thanks Mr. Sampat

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