28 December 2013
A private ltd company in Bangalore has not filed service tax since 2006 though covered under service tax and re-invested all amount in business. However, they suffered losses and are not in a position to pay service tax now which has so far accumulated to the tune of 30-35 lakhs without interest & penalty .They cannot opt for VCES due to lack of funds, have not received any notice so far. What are the consequences in order, that is, lets say if they receive a notice from service tax deptt., will they be right away arrested or be given a time period (if yes, how much and in how many installments) to pay back the tax dues. Will it be the same if they decide to wind up the company or is there any exemption for companies declaring themselves as Insolvent? What can be the best resort for them?
CAclubindia
