pls help!!!

 Dear frnd such a free service is  not taxable at all.

No service tax on free services.  If the value of service is zero then the tax on it say 10% will also be zero.  This point has been stated in the case   Bharti Cellular Ltd. vs CCE (2005)

You can study the case at following link, specially point 5

https://www.indiankanoon.org/doc/609523/

The circular of board referred in case can be read here -

 The provision of free service is mentioned in point 5 (Year 2003 - Circular No.62/2003)

https://www.servicetax.gov.in/st-cirmainpg.htm

thanx a lot for your quick reply..........

thanks mohit valuable rply

 Service tax is payable only after realisation of consideration for service................................in case of free service there is not chances of realisation of consideration......................so no tax

Thats rite, n also check whether books r on cash or acc

Mam,

It is a Tax on Taxable services provided.

in the given case too views are available

a) If the Seller and Service Provider are Different, even free service to consumer service tax will prevail. (Eg. Vehicle Services in Showroom)

b) if the buyer and seller are same, then it is not taxable.