Clarification on Service Tax Liability for Contractual Obligations: Circular No. 214/1/2023

CIRCULAR NO. 214/1/2023-SERVICE TAX [F.NO. CBIC-110267/14/20…LEVIABILITY OF SERVICE TAX ON THE DECLARED SERVICE “AGREEING TO THE OBLIGATION TO REFRAIN FROM AN ACT, OR TO TOLERATE AN ACT OR A SITUATION, OR TO DO AN ACT” UNDER CLAUSE (e) OF SECTION 66E OF THE FINANCE ACT, 1994CIRCULAR NO. 214/1/2023-SERVICE TAX [F.NO. CBIC-110267/14/2023-CX-VIII SECTION-CBEC], DATED 28-2-2023An issue has arisen on the levy of service tax on liquidated damages arising out of breach of contract, forfeiture of salary or payment of bond amount in...

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