Service tax Registration problem

This query is : Resolved

Amit Saraf (Querist)
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20 February 2008 the regn. form of my co. did not contain a service which we were providing. However, we were regularly receiving service tax and paying it to the govt. But in an audit of our clients, it was pointed to them about this anomaly. The CEO has asked our client to pay the whole of service tax.
we have provided all the doc.evidence about payment of such tax but to no avail.

Now, that we have amended our regn. no. what could be the possible redressal?

we are into erectioning and commisioning business and also provide AMC n AMC was missing from our regn.

Please provide a solution

Dayal

Dayal (Expert)
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20 February 2008 From what you have stated it seems you already had a registration under service tax and you had not registered your additional service with the central excise authorities.

However you continued to charge service tax and collected the same from your clients and equally deposited the same with the government.

There is absolutely no reason to pay the service tax to the client as you already had the registration, it can only be construed that you have discharged service tax under a wrong category.

Service tax was payable by you and you have rightly collected the same.

Absence of category does not make a difference since the service tax registration is pan based STC and which is equally applicable to all the categories of the services irrespective of it being registered or not, at the most it is a procedural lapse, but since there was no intention to evade the tax at your end, penalty may be waived by the authorities.

You may accordingly inform your client that under all circumstance the service rendered was taxable and procedural lapse at our end does not render it to be a non taxable.

Therefore we shall not refund the amount under any circumstances.

If at all they insist then you need to take an undertaking from them that at any future period if the authorities make the demand the same shall be paid by tejm with interest and penalty if any.

Or you may indemnify them that if any demand is raised on them for wrong credit availed by them on your invoices, then the same will

Amit Saraf

Amit Saraf (Querist)
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20 February 2008 but Mr. Dayal my client in return has stopped my payment because of this and that a demand has already been made by the authorities to our client citing this procedural lapse. now the client in turn has has fully diverted the claim to us

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R.V.RAO

R.V.RAO (Expert)
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20 February 2008 SINCE YOUR COMPANY IS PROVIDING ONE OF THE TAXABLE SERVICES UNDER SERVICE TAX ACT YOU MUST INCLUDE ALL THE TAXABLE SERVICES IN YOUR SERVICE TAX REGISTRATION APPLICATION AND THESE DETAILS WILL BE REFLECTED IN YOUR SERVICE TAX REGN.CERTIFICATE ANDYOU WILL ALSO BE ALLOTTED A SERVICE TAX REGN. NUMBER WHICH YOU MUST QUOTE ON ALL SERVICE TAX INVOICES RAISED BY YOU.
WITHOUT YOUR QUOTING THE SERVICE TAX REGN. NUMBER, NO CLIENT IS WILLING TO PAY THE SERVICE TAX COMPONENT OF THE INVOICE.
BUT IN YOUR CASE , I UNDERSTAND THAT YOU HAVE COLLECTED AND DEPOSITED SERVICE TAX WHICH IS ON THE RIGHT SIDE OF THE LAW.
YOU HAVE ( I HOPE) ALSO AMENDED THE SERV. TAX REGN. CERTIFICATE AND ALSO THE REGN. NUMBER.
IF YOU HAVE NOT AMENDED YOUR SERV. TAX REGN CERT. WITH WHAT ALL SERVICES YOU RENDER (LIKE AMC ETC...) , YOU CAN AMEND THE REGN .CERT. AT ANY TIME SHOWING PROOF OF THE AMC ETC....
HOPE YOU ARE ALSO FILING THE HALF YEARLY SERV. TAX RETURN ALSO.
R.V.RAO