Meaning of Consideration

Service tax is applicable only if there is activity

and

there is consideration

 Consideration without activity not taxable (like gifts)

 Also activity without consideration not taxable (like free service)

Consideration

means everything received or recoverable in return for a provision of service

It may be

Monetary

or

Non Monetary

Even deferred consideration covered

It may be received 

directly by service receiver

or

indirectly from some other person on behalf of other person

When is Consideration taxable

There should be

direct link or immediate connection

between activity and consideration

Otherwise service tax not leviable

QUESTIONS

Whether following  Consideration taxable?

Nobel prize received for lifetime contributuion

Services received from government against taxes paid

Imposition of fine, penalty by government