Dispute between s tax deptt and my firm on amount deposited

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 October 2017 i m a woman enterprenuer, but now my business is closed due to the industry operations closed where my work order was given to my firm. There is a dispute between service tax department and my firm about the amount paid to department by me after receiving it from my principal industry where i was regd to execute their work order. The s tax deptt says that amount deposited in govt treasury is less than required amount which i had to deposit. I have statement from the closed industry accounts office to pay as 55000/= rupees to pay by me as on closure date but the department says it is about more than 3 times of that figure. What to do now? What legal relief i can get from indian law prevailing as on date?

Querist : Anonymous

Querist : Anonymous (Querist)

21 October 2017 pl answer to my above mentioned query as soon as possible.

Asha Kanta Sharma online

Asha Kanta Sharma

(Expert)
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12 July 2024 In your situation, where there is a dispute between you (the entrepreneur) and the service tax department regarding the amount paid, here are steps you can consider to resolve the issue:

1. **Gather Documentation**: Collect all relevant documents related to the payments made by your firm to the service tax department. This includes receipts, challans, bank statements, and any correspondence with the department.

2. **Review the Service Tax Demand**: Obtain a clear understanding of why the service tax department believes you owe more than what you have paid. Review the notice or communication from the department that specifies the outstanding amount and the basis for their calculation.

3. **Engage with a Tax Professional**: It is advisable to consult with a tax professional or a chartered accountant who has experience in handling tax disputes. They can review your case, provide guidance on the legal provisions applicable, and assist in preparing your response to the department.

4. **Respond to the Department**: Prepare a detailed response addressing the discrepancies pointed out by the department. Provide all supporting documents to substantiate the payments made by your firm. Clearly articulate your position and any evidence that supports your claim that the correct amount was paid.

5. **Appeal Mechanism**: If the dispute persists and you believe you have strong grounds, you may consider filing an appeal with the appropriate appellate authority under the service tax laws. The appeal process typically involves submitting an appeal application along with supporting documents and arguments.

6. **Legal Counsel**: Depending on the complexity of the case and the amount in dispute, you may also seek legal representation to escalate the matter further if necessary. A lawyer specializing in tax litigation can provide legal advice and represent you in legal proceedings, if required.

7. **Stay Updated on Deadlines**: Ensure that you comply with any deadlines set by the service tax department for responding to notices or filing appeals. Missing deadlines can adversely affect your case.

Given the specifics of your case and the complexities involved, professional assistance from a tax expert and potentially a lawyer specializing in tax matters is crucial. They can navigate the legal framework, assess the strength of your case, and advocate on your behalf to resolve the dispute with the service tax department.

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