Service tax on penalty

CA SAHIL MITTAL (JOB) (240 Points)

18 July 2012  

Dear All

Whether penalty charged by service provider from service receiver will attract service tax levy? Like in our case we are providing airport service and charging penalty from service reciever, if their aeroplane stays in our airstrip for more than 3 months. So are we liable to charge service tax on that amount.

Thank in advance.