Deduction on Account of Short Notice Pay and Service Tax Liability
One of the employees, working as a deputy manager, left the job by giving 45 days' notice. As per the appointment letter, it should have been 90 days. However, the HR Manager agreed to waive off 45 days in the presence of the departmental head. But while processing her last month's salary and credit leave, it was noticed that the 45 days' amount had been deducted, and a service tax was also charged. She had also handed over the charge within 45 days.
Can somebody help me to know what options are available to recover the 45 days' pay and service tax? What is the legal position in favor of the employee and the employer? Please also let me know the process of checking replies received from experts.
My email id is [Email Removed For Privacy Reasons] or on cite HR.
Thanks,
mdk
From India, Thane
Acknowledge(0)
Amend(0)
One of the employees, working as a deputy manager, left the job by giving 45 days' notice. As per the appointment letter, it should have been 90 days. However, the HR Manager agreed to waive off 45 days in the presence of the departmental head. But while processing her last month's salary and credit leave, it was noticed that the 45 days' amount had been deducted, and a service tax was also charged. She had also handed over the charge within 45 days.
Can somebody help me to know what options are available to recover the 45 days' pay and service tax? What is the legal position in favor of the employee and the employer? Please also let me know the process of checking replies received from experts.
My email id is [Email Removed For Privacy Reasons] or on cite HR.
Thanks,
mdk
From India, Thane
Acknowledge(0)Amend(0)
Please see the reply posted today on your other thread on this subject. However, service tax liability is not required to be deducted from the employee. Include this part also in the complaint to the inspector under the Shops and Establishment Act. Furthermore, make a complaint to the authorities under the service tax for the wrongful deduction of service tax from you.
Thanks,
Sushil
From India, New Delhi
Acknowledge(0)Amend(0)
225Thanks,
Sushil
From India, New Delhi
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Notice period.jpg
Notice Period Extension Letter Format.doc
Service Tax.pdf