Service tax is applicable or not
Sir/madam,
My brother has resigned from his job of a resturent recently without serving notice period of two months. There for the resturant authority has issued a pay notice to my brother mentioning that accoring to appointment letter he has to serve 2 months notice period or else he has to pay two months salary to them. So they have mentioned one amount giving that excluding taxes, should be given within 30 days of receipt of that pay notice otherwise legal action will be taken against him. Today i have called them to know how i need to make payment. They informed me that we need to give Demand draft. I just prepared to pay through DD but again I thought to confirm in favourable and payable at, so i just mail them and then they said that whatever the amount given on the pay notice, other than that 15% service tax also we need to serve for the same. Now my question is whether service tax will be applicable to this case or not ? I would also like to know if some one take legal action like in this case, upto what extend one can be penalised ?( No intension to default, just for knowledge)
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