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How will department come to know if i dont register for vat?

This query is : Resolved 

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.



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