Vijay Shankar (Regional Accounts Manager) (80 Points)
08 May 2013Most of the companies deduct notice period recovery, training cost recovery etc at the time of FFS. Whether service tax is applicable on these receoveries.
In draft circular F.No 354/127/2012-TRU dept gave hint on this. but they havent clearly instructed.
If it is applicable can we receover the service tax from employees?
Regards,
Vijay
Dipjyoti Majumdar
(CA in service & CS. dipmaj@ rediffmail.com )
(3468 Points)
Replied 09 May 2013
The Circular you are referring to have been in draft format only. It has not yet been formalised. Hence the recoveries mentioned by you are not liable to service tax levy.
Regards,
CAclubindia
