02 May 2013
Weather recovery made from supplier due to late delivery of goods liable for service tax? Purchase order clearly mention date of delivery and supplier surpasses the date and supplied after stipulated period. If any amount recovered from him will attract service tax being a service provider??
02 May 2013
Not a service hence not taxable. To be a service an activity has to be carried out for a consideration. Therefore fines and penalties which are legal consequences of a person’s actions are not in the nature of consideration for an activity
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