TaxTMI 
TaxTMI 
Applicability of service tax on free services
30 May 2006 
3 Replies 
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Taxability of free services: valuation rules now treat consideration in kind as taxable, creating potential service tax liability.
Valuation rules now treat consideration in kind as capable of forming the taxable value for service tax, signalling a possible extension of taxability to services supplied free of charge, while a contrary administrative view maintains levy continues on a receipt basis, keeping gratuitous supplies outside the charge until charging provisions are amended. (AI Summary)
Valuation rules now treat consideration in kind as capable of forming the taxable value for service tax, signalling a possible extension of taxability to services supplied free of charge, while a contrary administrative view maintains levy continues on a receipt basis, keeping gratuitous supplies outside the charge until charging provisions are amended. (AI Summary)
Whether Service Tax is payable on services rendered free of cost after 18/04/2006?.