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Collection of service tax at a lower rate

This query is : Resolved 

11 January 2013 the assessee is engaged in Outdoor Catering Service. Unaware of the new provisions, he continued to charge service tax @ 50% abated value of gross amount, instead of 60% of gross amount.

he cannot revise the bills as the service receiver wont pay the extra amount and he doesn't want to disrupt relations with the servce receiver

is there any way in which he doesnt pay the balance amt of service tax not charged..

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Guest (Expert)
11 January 2013 Non payment of service tax as per rules will attract penal provisions and prosecution. It is advisable to client to pay balance service tax at the earliest to avoid any hardship.

11 January 2013 one has to pay from own pocket if tax is not collected from service receiver.


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