Chandrakant Patil
asked over 2 years ago
If We (Co.) charged the penalty as per PO terms- to vendor for failure to full fill the terms as per Purchase Order/ Agreement, whether the penalty is applicable on it ?, if yes what is the criteria?
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2 Answers
veeru
answered over 2 years ago
As per my opinion, Service tax should not be applicable on the penalty charges, which you reimburse from the vendor since the same is not towards any taxable service rendered by you.
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Aarti Vadnerkar
answered over 2 years ago
Dear, As per my opinion, Service tax should not be applicable on the penalty charges, which you reimburse from the vendor since the same is not towards any taxable service rendered by you.
