Iam student of C.A. final year my question is that a service reciver paid payment regarding .service provided to him with fine due to delay payment.Can theService provider charged the service tax on value of the service or both means value of service and fine amount?
Service Tax is to be charged only on the value of taxable service provided or extended.Any fine or penalty paid by the recipient of service in respect of any delay in payment or deviation from the laid down norms as per contract, should not be taken or considered for calculating service tax amount, as they are not in the nature of service.So, you can go ahead to say that, the fine paid CANNOT be taken for the purpose of calculating service tax amount.
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