Agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act under Declared services [Section 66E] :

In terms of this entry, the following activities if carried out by a person for another for consideration would be treated as provision of service:-

•  Agreeing to the obligation to refrain from an act.
•  Agreeing to the obligation to tolerate an act or a situation.
•  Agreeing to the obligation to do an act.

Non-compete agreements

By virtue of a non-compete agreement one party agrees, for consideration, not to compete with the other in any specified products, services, geographical location or in any other manner. Such action on the part of one person is also an activity for consideration and will be covered by the declared services.