Service tax applicability

[Asked by Guest]

If someone provides some services to any person or any company but dosen't charge anything for the service provided. Whether in this situation whether any service tax will be payable as per valuation rules?

No service tax would leivable until the payment would be charged from the customer

No service tax is leviable if there is strictly no charge/consideration of anything for the service rendered. In case, if there is any thing in return by way of book adjustments / bartering of services etc, service tax can be levied as per Valuation rules.

AI Summary

Service tax applicability: no levy for strictly gratuitous services; consideration or barter triggers valuation rules.
Service tax is not leviable where services are provided with strictly no charge or consideration. If anything is received in return-such as book adjustments, barter, exchange of services or other consideration-the provision becomes taxable and must be valued and assessed under the applicable valuation rules.