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Whether Service tax to be charged on penalty to be received?

This query is : Resolved 

12 March 2009 If a perason (Service Provider)comes in to contract with another person(Service Receiver)to provide a taxable service.According to term of contract if service receipeint revoke the contract he have to pay an amount of penalty to the service provider.Now my question is that whethr Service tax is to be charged on the amount of penalty to be received from service receiver?

12 March 2009 Service Tax is leveid only when taxable services are provided, since receiving/giving penalty is not a service at all so no ST



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