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hi all
I would like to seek information on a very important issue.
I was working for a government bank now i have resigned.since i cannot work so i have asked my employer to take 3 months notice period amount.
My employer is saying now that i have to pay 3 months notice period ,that is my basic salary of three months.Also he is asking for Service tax on Notice period Recovery amount.
when i asked him as to why they are charging service tax on notice period pay recovery ,on that they said that it is government of india instruction.
I am absolutely unsure on this and has never heard of it.Till now ,its been 2 days i have not asked them to recover.
Please advice is there any such govt of india instructions

From United States, Newark
Service tax is chargable on the service rendered to the customer/client. There is no service tax received by you / neither there is a bill prepared by the bank. thus there should not be any service tax on the deduction. The reason why bank is charging service tax MAY Be is that from last year service tax in chargeable on all service tax unless specifically excluded.... I think u can take up the matter and have a clear chance of proving yourself.
CA Vikas Goel

From India, Mumbai
I would like to state that my employer had recovered service tax on 3 months notice period.Somehow i felt that i should not pay but i was left with no choice.
Also explanation for charging service tax on shortfall of notice period has been given that it is being mentioned clearly in "'Taxmann's Service Tax Ready Reckoner' by Shri V S Datey "
Also to clarify that my employer is a government organization.

From United States, Newark
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