A is a labour contractor supplies labour for construction structural work to various builders and received payment from those builders in advance and never issued any bill between the F.Y. but after the year end he is realized that, service tax must collect and paid, then he obtain the service tax certificate in April-2014, and then he approached to all his builders and some of them have paid the service tax but some of them denied to pay, saying hi’s registration is from April-14 hence they cannot pay service tax for last year.
Mr. A is registered as service tax category of Work contract and Manpower supply, and he use to residential complex shuttering works in his capacity and not in any control of the builder.
Mr. A is collected advance payment 1.5 Crore
When he contact service tax department, one service tax authority suggested him to pay service tax and file a case against that builder in consumer court whose are not paying service tax.
My question is, is this is the only way to recover the service tax? Or there is any such provisions to force those builders to pay service tax.
Is there any provisions that service receiver must have to collect service tax registration number from those contractor’s who all are crossing the exemption limit of 10 lakhs.
Or if Mr A did not collect or pay service tax for F.Y. 13-14 what would be the consequences, will he may be prosecute by the department in later or he will face any problem while auditing his account for the same year.
One more thing there is no work order issued by those builders who all are denying to pay service tax, and Mr A also not issued any bill to them, only received payment as advance
Please reply
Regards
CAclubindia
