What are the consequences of the following :
Say A service provider has collected service tax on exempted items . Should he remit to the department ? or is there any penalty for the act commited ?
Phalgun (Audit Manager) (327 Points)
17 November 2011What are the consequences of the following :
Say A service provider has collected service tax on exempted items . Should he remit to the department ? or is there any penalty for the act commited ?
CA Unnikrishnan Nair N
(Chartered Accountant)
(2083 Points)
Replied 17 November 2011
Collecting tax on exempted service and withholding the same may attract prosecution. Either refund to the party or pay to government.
LIVE Course on Foreign Exchange Management Act (FEMA)(with recording)
LIVE Form 10 B and Form 10BB: Handle Tax Audit Reports of Charitable Organizations(with recording)