13 October 2014
A client of mine has business liable for Works contract tax. He has registered himself for Service tax. However client is of the view that he wont register for MVAT & show the contract as pure service contract.I have told him about the penalties that can be imposed if he doesnt make registration. To this, he counter-questions me as how would department caome to know of non registration of VAT? Can they come to know about it when i pay service tax? I wish to persuade my client for registration in good faith however i have no answer to his question. If any one can me please.
10 November 2014
Rather than some body detecting you to be a dishonest tax payer, it is YOU who should feel that "be a good tax payer." If the client is asking such a question, it means the client is dubious.