banner_ad

Service tax liability on notice pay collected from employees

This query is : Resolved 
Profile Image

Profile Image

(Querist)
28 October 2014 Dear Sir,

I need clarification on charging service tax on collection or recovery of notice pay amount from employees on leaving the organisation without serving for notice period after resigning.

Please give supporting's (as to notification, sections etc.) for your replies as I need to take it forward in my organisation.

Thanks in Advance.
Profile Image

Annu Agarwal

Profile Image

Annu Agarwal (Expert)
28 October 2014 No service tax shall be levied on noticepay as it is not the consideration for any service rendered.
Profile Image

@VaibhavJ

Profile Image

@VaibhavJ (Expert)
28 October 2014 As there is no provision in Service Tax to charge service provided by employee to employer, notice pay recovery can not be taxed.

Also it is recovery for not providing service so there is no question for paying ST on such amount for which service is in fact not rendered by employee.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
26 May 2026
Senior Accountant cum purchase Manager

Vardhaman Group of India

Pimpri Chinchwad

CA Inter

View Details
Company
08 May 2026
Paid Assistants

Quick Taxperts Private Limited

Bengaluru

Graduate (Any)

View Details
Company
29 May 2026
Accounts assistant

Shubh Consultancy

Mumbai

Graduate (Any)

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
04 June 2026
Semi Qualified CA

Goyal Puneet & Associates

New Delhi

CA Final

View Details
Company
ARTICLESHIP 04 June 2026
Article

Rakhecha & Co.

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 23 May 2026
Article Assistants

Acupro Consulting

Gurgaon

CA Inter

View Details
Company
29 May 2026
Company Secretary - Part time

Shaswat initial support private limited

Ahmedabad

CS

View Details