Service Tax Not Prima Facie Leviable On Amounts Claimed As Performance Linked Incentives/Commission: Delhi High Court

The Delhi High Court ruled that service tax is not leviable on performance-linked incentives (PLIs) paid to employees, as the amounts claimed were not related to a service provided. The Court stated that these payments were part of the employment contract and were not a separate service. This decision clarifies the tax treatment of PLIs under the service tax regime, providing relief to businesses that had been subjected to disputes over the applicability of service tax on incentive-based payments.