Saswatabanerjee
Partner - Risk Management
Suresh2511
Labour Consultant

PRIME SPONSOR - FACTOHR - Customised Payroll, GPS Enabled Attendance, Travel, Performance Management, HRMS. Explore Features
Hi all, An employee has resigned and is serving notice for 30 days instead of 90 days . He has asked to buyout the rest notice period. please share format for FULL AND FINAL STATEMENT so that i can share it with him .
Cite.Co is a repository of information created by your industry peers and experienced seniors sharing their experience and insights.
Join Us and help by adding your inputs. Contributions From Other Members Follow Below...
Please share your format so that we can make necessary changes in it.
Till date no employee opted for buyout this is first case in our company reason we dont have any format,
also,our company norms buyout is done on gross salary, the employee salary is 38k .
Dear KanikaPramod,
Pls find Full & Final Settlement of Account format in attached excel for your reference.
Further I would like to share with you all the applicability of Service Tax on Shortfall of Notice period amount.
Many of us are not aware that there is Service Tax applicability on Shortfall of Notice Period amount recovery, which is payable by the employee himself. I am attaching circular, in this regards for members benefit.
Inorder to help the left employees, it is advisable to adjust the maximum balance unavailed leave against the shortfall of notice period, so as to minimise / reduce his /her service tax liability.
Regards,
Suresh
Name of Company:
Address:


FULL & FINAL SETTLEMENT

Name of Employee: Arun Bhaskar Surya Date of Joining:
Emp. Code: 1234 Date of Leaving: 31.07.2017
Designation: Purchase Officer: Date of Resignation:01.07.2017

Salary for the Month: Jul-17 Days Paid 31
Earnings Amount in Rs. Deductions Amount in Rs.
Basic Prov. Fund
Dearness Allowance ESI
House Rent Allowance Prof. Tax
Commuting Allowance TDS
Other Allowance Others
Balance Leave Encashment 60 days Shortfall N.P. 76000
Gratuity for __Years

TOTAL 38000 76000

RECEIPT
In view of the above settlement I hereby confirm that I owe the sum of Rs. (Rupees: ) to M/s. Towards shortfall of Notice Period
I also hereby confirm that I have no further claims of whatsoever nature against the Company including re-employment and or re-instatement.

I Accept
Place:

Signature
Date: Arun Bhaskar Surya

Attached Files
Membership is required for download. Create An Account First
File Type: pdf Service_tax_applicability_on_Short_notice_recovery.pdf (40.8 KB, 90 views)

Thanks Suresh, this will help alot.
Service tax is not applicable on any thing related to employment.
Notice period be out is related to employment and is therefore out of the service net tax the opinion given in your attachment is definitely wrong. There is no need service tax on this amount.
In any case, service tax is not applicable for person having a business turnover of less than 10 lakhs. So even under that rule this employee would not be covered.
Further, please note that service tax is now replaced with GST. Under GST also employee related services are not covered under any tax
PRIME SPONSOR - TALENTEDGE "Interactive Anywhere Learning". Executive courses from top reputed institutes like IIM, XLRI, MICA. View Courses
Add Reply Start A New Discussion






About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2019 Cite.Co™