Non payment of service tax for the financial year 2014-2015

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Hello, I got a letter from Service Tax Deptt. with subject Non payment of service tax for the financial year 2014-2015.

My question is what steps should be taken to resolve the situation? I work as a freelance programmer and receiving payments from abroad for software development services. My accountant says that I don't need service tax registration since its under 'export of services' and exempted from the service tax liability.

The letter says following:

From the relevent records for the finencial year 2014, 2015, it appears that you have earned substantial income but have neither obtained service tax registration, not paid Service Tax thereon.

You are therefore requested to intimate to the undersigned, within 20 days of recipt of this letter, weather the service income earned by you during the above mentioned year is attributable to any of the negative list services contained inSection 66D ibid or is for any reason, exampt from payment of service tax. you are also requested to produce self-certified copy of each of the following documents in respect of the FY 2014 - 2015:-

  1. Income tax returned filed by you with the jurisdictional Income tax office.
  2. Form 26AS
  3. VAT/ Sale tax returns, filed by you with jurisdictional VAT/ Sales authorities;
  4. Annual Bank account statements.
  5. Contracts/ agreements entered into by you with all persons for provision of service(s)
  6. Balance Sheets
  7. A reconcillation statemnet of service income reflected in your return filled with Income tax and Vat Authorities. 

 

Thanks Everyone.

 

 

Replies (4)

You are liable to get yourself registered under the provisions of Service Tax Act 1994 and claim the income earned from professional fees by way of exports as exempt from levy of service tax.

Get yourself registered and pay the service tax with Interest and late fees as applicable as per the provisions of the Service Tax Act 1994 and Rules thereunder.

You can file all requested reconciliation statements to substantiate your claim before receipt of any SCN.

 

 

Originally posted by : Nitin Bhuta
You are liable to get yourself registered under the provisions of Service Tax Act 1994 and claim the income earned from professional fees by way of exports as exempt from levy of service tax.

Get yourself registered and pay the service tax with Interest and late fees as applicable as per the provisions of the Service Tax Act 1994 and Rules thereunder.

You can file all requested reconciliation statements to substantiate your claim before receipt of any SCN.

 

 

Thanks Nitin for your reply. the letter is for 2014-15. do you think I will have to pay service tax for last 3 years with late fee? I currently don't have idea about how the late fee or penalty is calculated. I read some articles on google but all confusing for me. can you please point me in right direction? 

thank you for your help.

Yes all three years it would be applicable. 

Penalty leviable is as under:-

1. First 15 days Rs.500/- per return

2. Next Fifteen days Rs.1000/- per return

3. Maximum penalty of Rs.20000/- per return subject to maximum delay fo Rs.100/- per day..

I hope it clarifies your questions.

 

Thanks Nitin.

very helpful.


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