S.tax on recoveries from employees

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Querist : Anonymous

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Querist : Anonymous (Querist)
21 June 2013 Please advise.
Are recoveries from employees by the employer such as indemnity bond, notice pay etc. subject to service tax under negaive list regime??

This is an official instruction by a PSU. Is there any extreme logic by which it can be justified by them in law?

21 June 2013 Service Tax is applicable when some services are rendered by one person to another for consideration.
Problem cited by you does not fall into category of service rendered. We can never assume that company is rendering services to his employees for notice pay, indemnity bond, etc. recoveries as consideration.

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Querist : Anonymous

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Querist : Anonymous (Querist)
21 June 2013 Agree. But this is an official instruction by a PSU. Is there any extreme logic by which it can be justified by them in law?

21 June 2013 A PSU cannot change law. It might be the case that they have some evidence and support in this regard. You need to check that before proceeding.


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