Service tax on wedding planners

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

05 January 2012 HI,

we are wedding planners based in Udaipur Rajasthan and dealing purely in inbound business i.e forex only. we started business in 2004 and by mistake registered ourselves under event management considering our profession of wedding planning. for year 2004-05 we paid service tax whereas we were not supposed to as forex income was not taxable in that time. later we came to know this and we stopped collecting and paying tax. IN 2008 we were asked and surveyed and were given notice to pay service tax since 15 mar 2005. On researching for our defence we learned that wedding and wedding planning was not enrolled under service tax preview till 1st June 2007.

We are preparing our case but need to know how strong are our case from escaping our tax liabilities till 1st june 2007 as the services were not taxable.

thanks

VVS

U S Sharma

U S Sharma (Expert)
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05 January 2012 mere payment in forex does not exempt the ST liability , as the services are provided and consumed within india, payment in forex does not change the taxability of service provided, hence ST is payable

Querist : Anonymous

Querist : Anonymous (Querist)

23 March 2012 Service tax people have raised tax liability from 2004 to 2007, whereas marriages were not taxable till 1st June 2007. They have raised demand with 100% penalty without deciding our case (fyi, we have lost the case till supreme court against the stay order). whats the next step for us to do?? our case is very strong and we are not in position to pay the tax with 100% penalty. please advice what can we do??

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Querist : Anonymous

Querist : Anonymous (Querist)

23 March 2012 Is it possible to speak to someone in this matter and explain the situation?