12 August 2013
I am assessee under under service tax as work contract service provider.I started my business in 2009 but I failed to take registration .I take registration on 09/08/2013.Till now I did not collect any amount as service tax from service receiver.Now i wish to declare my liability under VCES scheme.My question is whether I can raise a supplementary invoice and collect service tax from the service receiver relating to period prior to taking registeration.If so whether service receiver can take CENVAT credit of the amount collected by me
12 August 2013
In normal course when one pays tax the credit for the same would be available. However as far as the customer is concerned if tax has been paid under fraud, suppression of fact etc then the credit cannot be availed.
As long as you had no malafide or intent to evade duty and that is made clear in the covering letter to VCES 1 [ reasons why you did not pay maybe adverted to] Also that you would be raising supplementary invoices on the receivers and seek to collect maybe mentioned. In such cases of bona fide error, the service receiver would be eligible to avail the credit. SC case of Formica India would come to your rescue.
CAclubindia
