ARCHITECT CONTRACT FOR INTERIOR

This query is : Resolved

Ashok Gosar (Querist)
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21 July 2009 AN ARCHITECT HAS RECIEVED CONTRACT CHARGES IN THE FINANCIAL YEAR 2007/08. THE CONTRACT WAS OF INTERIOR DESIGNING INCLUDING MATERIAL AND LABOUR.

HE HAS NOT FILED RETURN AND HAS NOT PAID SERVICE TAX.

KINDLY LET ME KNOW WHAT IS THE SERVICE TAX LIABILITY?

WHAT COULD BE PENAL PROSECUTION ON THE ASSESSEE?

CAN THE COMPOSITION SCHEME BE MADE APPLICABLE?

THANKS

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
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30 July 2009 Execution of contracts could be under works contract wef 1.6.2007. Prior to that no levy.
Compostion applicable - For period 1.6.2007 to 1.3.2008 = 2.06 % ST and thereafter 4.12% on receipt of money basis. Interest on delayed payment is 13%. No prosecution provision in this tax.