Service tax applicability

[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?

AI Summary

Service Tax Not Applicable on Free Services Unless Compensation Exists; Bartering or Adjustments May Trigger Tax Under Valuation Rules A query was raised regarding the applicability of service tax when services are provided without any charge. Two responses were received. The first response stated that no service tax is payable until a payment is charged from the customer. The second response agreed, adding that if there is no charge or consideration for the service, no service tax is applicable. However, if there is any form of compensation, such as book adjustments or bartering, service tax can be levied according to valuation rules.