15 June 2013
Dear Sir/Madam If we( Individual ) are not registered with Service Tax Deptt.& giving Taxable service & Receipts is above 10 Lacs per year since 10 years old & not charge Service Tax from Clients. after that we receive a notice from Service Tax Deptt. in which Service Tax Department is required Copy of TDS Certificate of 5 years, ITR, Balance Sheet etc. & department has already been shown Form No. 26as for 5 years old.
In view of the above, does Service Tax make me or not? Because we are not charge service Tax from Clients. can we Appeal or Case against the above said matter. Department has Form No. 26as of 5 years old. If we go to the court for the same, then what will be the result imagination? our case would be strong or not ???? Please Reply for the same. I shall be very thankful to you
15 June 2013
Dear Amit, Department is not concerned with whether you have collected service tax from your customer or not. you are liable to pay service tax even if u have not collected from your client by making it cum duty (i.e. consideration received by you is deemed to be inclusive service tax). However, if you prove your activity is outside the purview of service tax, you can save the tax. so whether you case is strong or not depends on the nature of services provided by you. you have two options either to pay entire service tax with interest to avoid show cause notice or wait for show cause notice to see what case they will made against you. sometimes even error in drafting show cause notice or making wrong allegation saves an assessee and since inception, service tax on some activities are matter of dispute.