13 August 2013
My Friend started a new company since 8 months ago. His client used to make the payment of bill inclusive of service tax 25% and remaining 75% his client has paid to the govt.As lack of knowledge about the service tax he has used that tax amount and even not registered also so kindly advice how this issue can be solved?
15 August 2013
If the turnover of your client was less than 10 Lakh he need not pay any service tax.
If turnover is more your client can avail benefit of Service Tax Voluntary Compliance Encouragement Scheme
disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case