levy of service tax

This query is : Resolved

srikanth (Querist)
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27 June 2011 Hi all

We got gift voucher worth of 7000/- which can used for beauty services... but in that voucher they specified taxes extra..my doubt since services are free how they can levy service tax on free services since free services are not taxable.....the case is we got this voucher from PVR cinemas along with ticket... and the Beauty and spa name specified in the voucher is new one... This is like his promotion...i dont think PVR has bought this vouchers...
since there is no cash transaction..is it right to levy service tax
Thanks in advance...pls reply as early as possible since validity of voucher is 30th june...

U S Sharma

U S Sharma (Expert)
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27 June 2011 vouchers are kind of cash, unless services are provided service tax can not be charged, so the service user has to meet the bill of service by voucher and service tax by cash.