Service tax on exports

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 November 2009 During the FY 2003-04, I (proprietorship firm) have received commission > 4 lakhs from a manufacturer in India towards export order procured by me. The goods were exported by the manufacturer and on receipt of the entire sale consideration, he has paid the commission to me in INR.

I have not registered with Service tax nor charged any service tax.

I have received notice from Service tax dept in reference to audit of accounts of the manufacturer and show cause notice has been issued for non registration, non filing of return and non payment of Service Tax

Pls advise the applicability of service tax and course of action to be followed by me.

ANIL JANGID

ANIL JANGID (Expert)
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02 November 2009 YES,YOU ARE LIABLE TO PAY SERVICE TEX,YOUR SERVICE RECEIVER IS INDIAN MANUFACTURER,AND PAYMENT MADE IN INDIAN RUPEES SO THIS IS NOT EXPORTABLE SERVICE.

Querist : Anonymous

Querist : Anonymous (Querist)

02 November 2009 Thank you for the feedback but pls let me know the following :-

1)There are no such transactions in the firm after 31st Mar 2005 - Whether application for service tax registration is now required to be done and returns filed from the year 2003-04

2) Whether I need to pay service tax only on the transaction pointed in the notice or voluntarily disclose other small deals also and pay tax thereon ?

2) What is max penalty under various heads ?

3) is it possible to reduce the penalty and interest amount ?

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ANIL JANGID

ANIL JANGID (Expert)
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02 November 2009 IN CASE NO TRANSACTION AFTER 31st Mar 2005 - NO NEED SERVICE TEX REGISTERATION AND RETURN.
NOW YOU PAY THE DEMANDED AMOUNT AS PER SHOW CAUSE NOTICE.YOU CAN REQUEST WAVE FOR PLENTY.