GTA - Detention Charges

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Kamaraj Mani. N

Kamaraj Mani. N (Querist)
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20 January 2009 At the time of calculating Service tax, how i have to treat the Detention Charges?

K V Subba Rao

K V Subba Rao (Expert)
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20 January 2009 This is a debatable issue as I find contradicting opinions:

(1) Demurrage Charges is not liable for Service Tax as per Para 102.5 (Page 509) in Taxmann's Service Tax Ready Reckoner authored by Sri V S Datey

(2) Demurrage Charges is liable for Service Tax as per Para 2.15.2 of http://cagofindia.delhi.nic.in/cagreceiptaudit/indt_tax/ser_tax/GoodPracticesguide.htm