service tax on liquidared damages

sudhakar ca cwa (service) (1518 Points)

01 September 2010  

Hi all

this is the case
we are civil contractors
we raised an invoice of  Rs. 10 lakhs to our customer
but the customer has paid only  Rs. 9 lakhs and for the remaining one lakh he sends a debit note showing is as liquidated damages.

my questions is whether we have to pay service tax on liquidated damages are not.