25 March 2014
Is Liquidated Damages as per contract is taxable servie u/s66E (e) of serrvice tax ? Even though there is no service provided and no consideration provided.
Manufacturing company had took order for manufacture and there is clause of Liqiudated Damage(LD) if required goods not delivered with in time mentioned in PO than LD will be applicable and buyer will deduct the same form payment of such PO. My Qust is is this LD Deduction is liable to Service Tax u/s66 E.. ? And if Yes whether Cenvat Credit is availabe of said Service Tax. !!!
26 March 2014
Obligation to tolerate an act or a situation : means to accept the occurrence or existence of an act or a particular thing, which is imposed by condition or circumstances, in a contract, agreement or any other document which is legally enforceable by law
Hence compensation is considered as consideration and taxable
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