Whether service tax is applicable on salary paid under notice period
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Whether service tax is applicable on salary paid under notice period
M/S HCL Learning Ltd. Vs Commissioner of CGST, Noida
PETITIONER: M/S HCL Learning Ltd.
RESPONDENT: Commissioner of CGST
FACTS:
Revenue has demanded service tax on that portion of salary which has been paid to the employee but recovered back due to breach of contract of the total term of employment. There is a contract between the appellant and his employee that employee shall be paid salary and the term of employment is a fixed term and if the employee leaves the job before the term is over then a certain amount already paid as salary is recovered by the appellant from his employee.
HELD:
Recovery is made out of a salary that has already been paid and salary is not covered by the provisions of service tax and thus no service tax is leviable.
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