Non-payment of service tax

This query is : Resolved

Ravikant (Querist)
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26 May 2011 Dear Sir,
I m a tour operator or you can say cab provider.I want to ask you about my few doubts.
1.presently i'm working under a contract with hcl company,banglore.what rate of service tax i have to charge from that company.
2.i had worked under navy contract in manglore for 2 years 2005-2007.i didn't knew about Service tax rules & regulations as i was not aware of it.I was providing services to Govt(Navy) only,they told me that there was no need to charge it from Govt.& then pay back to them. I send them notices telling them that it is to be charged from anyone using services but they didn't respond. They just gave me my payment and no extra tax(Service tax)on it. Now Service tax authorities wants to force penalty on me? Sir, i request you to guide me the best way to deal with it.
Thanking you in anticipation.
I provided both tourist permit and private vehicles.Can this amendment in budget 2011 help my cause?
Exemption : To inter-state or intra-state transportation of passengers, in a vehicle bearing contract carriage and tourist vehicle permit for the period from 01.04.2000 to 06.07.2009

VIVEK BARANWAL

VIVEK BARANWAL (Expert)
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26 May 2011 FIRST CHECK YOUR TOTAL RECEIPT FOR THE YEAR
IF YOUR TOTAL RECIPT IS LESS THAN 10 LAC YOU NEED NOT CHARGE FOR SERVICE TAX.

Small units whose turnover is less than Rs 10 lakhs per annum are exempt from service tax. But they are required to get themselves registered with Service Tax Authorities once their turnover exceed Rs.9 Lakh during the financial year. Exemption is available, even if turnover crosses Rs.10 Lakh in current financial year, assessee need not have to pay taxes till Rs.10 Lakh and he will be liable to pay service tax only on turnover exceeding Rs.10 Lakh. However, if turnover exceeds Rs.10 Lakhs, there would be no exemption of Rs.10 Lakh in the next financial year

1. RATE OF SERVICE TAX IS 10.30%(ABATEMENT 60%) BUT YOU CAN NOT AVAIL CENVAT CREDIT

2. IF WORK AWARDED TO YOU ARE EXCLUSIVE TO SERVICE TAX THAN YOU MAY CHARGE SERVICE TAX TO NAVY (NOT PENALTY AND INTEREST PORTION) THEY ARE LIABLE TO PAY.

Ravikant

Ravikant (Querist)
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26 May 2011 Vivek thanks for replying. But My total Receipt is more than 10 lac.its about 35-40 lac. They didn't gave me any Service Tax on my bills.They didn't even passed my bills having Service tax.instead they cancelled all that bills and asked me to provide them with new bills with no additional tax on them.i did that without consulting any other.
Now question here is that if i didn't get the service tax from them, what shall i suppose to do if the Govt is asking me about that tax after 3 years.i have paid every other tax amount like tds,income tax on time every year.as i was not aware of this tax i didn't charged it & paid it.
What shall i do now?
Can this exemption in budget 2011 help me?
Exemption : To inter-state or intra-state transportation of passengers, in a vehicle bearing contract carriage and tourist vehicle permit for the period from 01.04.2000 to 06.07.2009.
Please suggest me something,any point,any law,any section from 1 to infinite that in this case is strong enough to resolve all my issues. I'm totally relying on the experts opinion.

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VIVEK BARANWAL

VIVEK BARANWAL (Expert)
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26 May 2011 FIRST CHECK YOUR CONTRACT IS INCLUSIVE OF ALL TAXES OR SERVICE TAX SHALL BE PAYBLE EXTRA.

CHECK ALL TENDER DOCS AND SEE TAX CLAUSE IN ALL CORESPONDANCE.

NORMALY GOVT AGENCY HAVE THESE CLAUSE IN TENDER ETC.

IF SER TAX IS PAYBLE EXTRA THAN SEND A DEMAND WITH COPY OF SER TAX AUTHORITY NOTICE .

THEY WILL LIABLE TO PAY