08 July 2014
Respected Experts, Kindly give your advice : I am a business man and engaged in my business of work contract since 1996, and use to provide service of work contract in Eastern Coalfields Limited and other Private Institutions, I use to quote Tender for the work order,and my turnover in the F.Y.2012-2013 was 35 Lakhs, without charging any service tax & 2013-2014 was 95 Lakhs, without charging service tax in Invoice, against which the Employer use to deduct 2% TDS for Income Tax and after deduction they pay me by cheque. Before getting registration in Service Tax, I have not raised any Service Tax from the Eastern Coalfields Limited,in non of my bill. After that on 01/04/2014 I have registered myself under Service Tax and got the Certificate from the Superintendent. Thereafter, on 02/05/2014 a notice of enquiry has been served by the Range Superintendent of Service Tax, to me, requiring to furnish the last 5 years Balance Sheet, Profit & Loss A/c, Bank Statement, TDS certificate, Work Order, etc. In this case I meet my consultant to sort out the problem, then he approached to the Superintendent with all relevant documents, the Superintendent told him that, I have violated the general rule of Service Tax and have registered too late. Hence, I have to pay the due service tax because I have crossed the threshold limit in F.Y. 2012-2013, have to pay the Service Tax which will be about 12.36% of 35 Lakh. Under such circumstances please provide me reasonable answer that what is the solution for this, my pleader contended that the I have not collected service tax from the employer then how can I pay such huge amount. Is there any Judgement or reference in this regard. Thank You to all experts. Please reply.
09 July 2014
In my opinion the superintendent should charge only penalty for non registration u/s 77 which is Rs.200 per day or Rs.10000 whichever is higher.
09 July 2014
Dear Parulji, I would like to know that for non-registration Rs.10000/- or Rs. 200/- will be charged as penalty, but my threshold limit have been crossed many years before, so I would like to know that in this case Superintendent can ask me that why I have not registered myself under Service Tax before, and I have not collected any service tax before, then how he can compel me to pay service tax. Is there any reference is there in this regard. Thank You.
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