Dear All
My Client is manpower contractor. He is receiving 100000 is adance for some personal commitments from service receiver. During the service tax audit the officials argue that the amount received from service receiver is taxable under law. We are providing interest for loan for the period from the advance is received, We are also giving evidence for those loans that is board resolution copy from service receiver for giving loan and account copy of the loan account from service receiver. But the audit officials not accepting those evidences. Please clarify.
1.Date of advance receipt is 2nd Sep 2010
2) Status of service provider is proprietory.
3) Service tax liability of the service provider is Rs.30.00 Lakhs.
4) Supply of manpower to multiple closely held limited companies.
5) There is no records ESI/PF//Profession tax for his manpower employed.
6) We are providing interest for loan
It is most urgent. Please clarify the same
CAclubindia
