Tax implications on compensation received.
Kavya Venkatesh (10 Points)
06 February 2024
Tax implications on compensation received for breach of trust. Both in income tax and GST.
3 Replies
Saravanan nagaraj
(463 Points)
Replied 08 February 2024
the case of GST, compensation is subject to tax if it is in the nature of a supply. If the compensation is not in the nature of a supply, then GST is not applicable. If the compensation is in the nature of a supply, then the supplier has to charge GST on the compensation.
Any compensation or other payment, due to or received by any person, in connection with the termination of his employment or the modification of the terms and conditions relating thereto is taxable under the head other sources.
sabyasachi mukherjee
(27574 Points)
Replied 09 February 2024
Tax implications on compensation received is for some other reason whatsoever.
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