14 December 2012
As we are materials works contractors as per the customers needs since 2002, we not yet filed and paid any service tax return and tax till date. but we had received notice from the central excise department mentioning that tax liablity of Rs. 12 lakhs along with interest and penality ?
1. How they came know about our service and how they calculated our service tax liability ? 2. we regularly filed income tax and sales tax retuns. 3. Normally our monthly turnover is 10 lakshs which include labour charges received rs. 6 lakhs.
14 December 2012
a) it could be possible from the avable data base with the dept. The amt stated shall be on the presumptive basis; and it is for the assessee to prove the actual liability supporting with financial statement and supportings. b)regularly filing income tax return and sales tax return will not qualify yourself not to pay service tax; if your liability not discharged. c) from your statement it is clear that your labour charges reaching 72 lacs per year which is supposed to be service taxable.
Pl. consult a MENTOR and make proper representation to the dept.
CAclubindia
