Service tax on notce period

This query is : Resolved 

04 October 2012 Dear Experts,
wen employee receives training service tax is applicable as there is service component but wen organization receives money as employee does not serve the notice period will service tax applicable on it?

04 October 2012 query is not clear
where employee / employer relation exists, there is no service tax component levied.

repost with clear details.

08 October 2012 Relationship exist. I know the answers is no but want to confirm with other experts. Notice period is where employee has to serve 1 month before he leaves an organisation. but if he don't then company recovers fine against that. will service tax levied on that?

08 October 2012 payment to/from employees are not taxable service.

09 October 2012 there is 1 argument against it. while providing training if employee leaves an organisation and company recovers the mony for the training it shall be liable for service tax as service of coaching been executed.

09 October 2012 till the period of training the person is trainee, and not permanent employee of company :) be clear that employee / employer relations comes after the training period only.


10 October 2012 As per my knowledge says relationship cms in to existence from the day person joins d organisation as per offer letter. training is part of their job. but there is contract for the same if that person leaves the organisation inbetween then employer recovers that training cost.

10 October 2012 once again check the letter of offer, you will get the facts clear, when they continue, company absorbs the training cost, but when they leave, they are not ranked as employee anywhere, coz their employment starts from 7th month (just after trainee status)

when the training period gets completed, they would get enrolled under master roll and would get benefits of employees, viz insurance, EPF, leave benefits and other benefits covered under the establishment.



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