If a kidnapper kidnaps a child and ask his father to provide the ransom money for not harming his son. Whether service tax would be applicable on such transaction:-
Reply
Service means any activity performed for consideration and includes declared service.
Agreeing to the obligation to refrain from an act or to tolerate an act or a situation has also been specified as a declared service under section 66E of the Act.
From the above it appears that from refraining to harm his son in return of fixed sum of money as demanded by the kidnapper, the kidnapper provides a service. Hence, the kidnaper provides taxable service and is liable to service tax. 
Tax collection-Issues
Since, it is not possible for the government to collect tax possible for the government can impose reverse charge mechanism, where on payment to the kidnapper the father is liable to take registration pay service tax under reverse charge.
SATIRE- COMMON MAN NOW CANNOT EVEN IN REST IN PEACE. TAXING EVERY THING WILL NOT SERVE THE PURPOSE. LOOKING AT THE ATTITUDE OF THE GOVERNMENT, DAY IS NOT FAR WHEN THE GOVERNMENT WILL IMPOSE TAX ON THIS ALSO.
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