Service tax on wrong tax code

Rashmi (Accountant) (140 Points)

14 March 2014  

Mr. A having service tax registration certificate under construction & civil structure but originally Mr. A is a Work Contractor and he has filled all return according to Work contract, and now he has amended his service tax to work contract, and also got a notice from the department for scrutiny, and department demanding him to pay a huge amount, that because department do not accepting the returns with abetment system as work contractor. Department says Mr. A should pay tax without abetment,  But Mr. A having all certificates including VAT etc.. for work contract.

Is there any way out to convince department that  Mr. A is not a builder the certificate he got wrongly, and he amended it when he realized the mistake.