Defaulter under reverse charge mechanism

This query is : Resolved

heena (Querist)
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17 September 2013

ONE OF OUR CLIENT IS LIABLE TO PAY SERVICE TAX AS PER LAW BUT THE SAME ARE NOT PAID TO GOVERNMENT ALTHOUGH WHOLE AMOUNT ALONGWITH SERVICE TAX HAS BEEN PAID TO CREDITOR.
OUR CLIENT HAS NOT FILED ANY SERVICE TAX RETURN.

IS THERE ANY VIOLATION ?

IF THERE IS VIOLATION THEN HOW CAN THIS VIOLATION BE REMOVED ??

Ankit

Ankit (Expert)
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17 September 2013 If you are talking about ST under Reverse Charge Mechanism, and you have not paid the amount, you are in default.

However, if you are not liable as per Reverse Charge and the amount of ST has been paid to the Creditor and he has not paid it to the Govt., you are not in Default…