Last year one of our vendor sent a bill along with service tax amount and we verified that the assessee status in Assessee Master provided by CBEC as "inactive" status. We asked them about their status and they informed us for releasing their payment without service tax amount because some problem with the tax department. We paid them in full after tds and closed our accounts for the year.
After 9-10 months suddenly they are asking for the payment of tax amount, which we have denied; because we can not avail the credit of those tax and cheked further that their acccount status is still showing as 'inactive. Please guide what to do, because we obeserved they are not depositing any tax to the govt but collecting wrongly.
Thanks & regards
CAclubindia
