Service tax on liquidated damages u/s 66e of service tax
This query is : Resolved
25 March 2014
Is Liquidated Damages as per contract is taxable servie u/s66E (e) of serrvice tax ? Even though there is no service provided and no consideration provided.
CA. RAVIKUMAR
(Expert)
25 March 2014
Please clarify the following points.
1) Whether the liquidated damages claimed is for the service or for the goods?
1) Whether the liquidated damages claimed is for the service or for the goods?
26 March 2014
Sir,
Manufacturing company had took order for manufacture and there is clause of Liqiudated Damage(LD) if required goods not delivered with in time mentioned in PO than LD will be applicable and buyer will deduct the same form payment of such PO. My Qust is is this LD Deduction is liable to Service Tax u/s66 E.. ? And if Yes whether Cenvat Credit is availabe of said Service Tax. !!!
Manufacturing company had took order for manufacture and there is clause of Liqiudated Damage(LD) if required goods not delivered with in time mentioned in PO than LD will be applicable and buyer will deduct the same form payment of such PO. My Qust is is this LD Deduction is liable to Service Tax u/s66 E.. ? And if Yes whether Cenvat Credit is availabe of said Service Tax. !!!
CA. RAVIKUMAR
(Expert)
26 March 2014
As this is Obligation to tolerate an act or a situation
It is taxable and eligible for input tax
It is taxable and eligible for input tax
26 March 2014
Sir,
Dose it not consider as conpensation for delay and there is no consideration .. still its chargable to ST ??
Dose it not consider as conpensation for delay and there is no consideration .. still its chargable to ST ??
CA. RAVIKUMAR
(Expert)
26 March 2014
Obligation to tolerate an act or a situation : means to accept the occurrence or existence of an act or a particular thing, which is imposed by condition or circumstances, in a contract, agreement or any other document which is legally enforceable by law
Hence compensation is considered as consideration and taxable
Hence compensation is considered as consideration and taxable
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Taxation of crypto futures in India Fy 2026- 2027
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- MSME disclosure and disallowance
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
