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levy of service tax


25 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.....pls reply...
since the validity of voucher is 30th june..
thanks in advance...

25 June 2011 service is not free, but paid by the buyer of voucher,

25 June 2011 Hi sir

Thanks for reply... 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




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