Misinterpretation of ST Exemption Notification

This query is : Resolved

Priyanka M. Solanki. (Querist)
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10 June 2008 Facts ::
If an Assessee owing to misinterpretation of an Exemption Notification under Fin. Act, 1994, billed in Sept. 2007 only to the extent of Rs. 100000/- without Service Tax component.
Total collection in Sept.07 out of the aforesaid bill is to the tune of Rs. 50000/-
The ST-3 in relation to the Taxable Services have already been filed for HYE Sept. 2007 showing Exempted services billed Rs. 100000/-.

Thereafter, while verifying the Half Year ended March 2008, an Auditor becomes aware about the Non-eiligibility of Exmpn. Notn. & thus the, Non-levy as well as Non-payt. of ST for HYE Sept. 2007.

Query :
what should be the Date of Invoice for billing the Customer for the ST component of Rs. 12360/-
Whether ST-3 for HYE Sept. 2007 can be revised ?
What will be the consequences of the Non-levy as well as Non-payt. of ST for HYE Sept. 2007.
What would be the manner of Disclosure in ST-3 for Both HYE.

Thanks & Regards,

Ajay Gumbar

Ajay Gumbar (Expert)
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26 June 2008 1. The assessee shall issue a supplementry invoice/ debit note to the customer for Rs. 12360 since invoice is raised for any service provided and this amount is a subset of a regular invoice.

This shall be issued on the current date (ofcourse, since credit note / supplementary invoice also have a serial number)

2. A ST3 return can be revised within 90 days from the date of its submission. Since this period has already been elapsed, the return cannot be revised.

3. The assessee has to pay the service tax of that amount along with interest at the rate of 13% per annum from the due date (ie. 6th October) till the date of such payment of tax.

4. Since the fact is not disclose in the ST3 of HYE Sep 07, its better (though not compulsary) to disclose the same in ST3 by a Note in the same or by creating a disclosure anxure in the ST3

Regards

Ajay

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