Service tax on free services
This query is : Resolved
Manoj Aggarwal
(Querist)
12 April 2010
Is service tax chargeable on free training to teachers of a school ( for how to use educational material) while selling Educational material ( books and CDs) to a school for students by a company ??
13 April 2010
Free service is not chargeable to service tax as no amount is received against the service. It must be ensured that if the invoice is raised, it should be specified that the same is FOC
SARATHY RP
(Expert)
13 April 2010
Dear Mr Manoj,
For a service to be taxed under the service tax, there are many criterias. The basic ones are:
The service has to be a taxable service as defined under the section 65 (105) and only on receipt of valid consideration the service tax ought to be discharged.
Under the free service the consideration is absent. Hence it is not taxable.
Thanks.
Sarathy
For a service to be taxed under the service tax, there are many criterias. The basic ones are:
The service has to be a taxable service as defined under the section 65 (105) and only on receipt of valid consideration the service tax ought to be discharged.
Under the free service the consideration is absent. Hence it is not taxable.
Thanks.
Sarathy
CMA Arif Farooqui
(Expert)
13 April 2010
no service tax payable onfree services
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