NON COLLECTION AND NON PAYMENT OF S.T. SINCE 2004

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This query is : Resolved

Dharmendra Verma (Querist)

16 June 2009 IF AN ASSESSEE DOES NOT REGISTER FOR S.TAX INSPITE OF GROSS RECEIPTS ABOVE EXEMPTED LIMIT, NO NOTICE RECEIVED FROM THE STAX DEPT. AND ASSESSEE NOW DISCOVERS THAT HIS SERVICES IS LIABLE TO S.TAX .PLEASE SUGGEST CONSEQUENCES AND ADVICES????

Madhukar N Hiregange

Madhukar N Hiregange (Expert)

17 June 2009 The process would be to apply for registration along with a covering letter stating that he has not applied earlier since it was not in his knoweldge and he would like to register and pay the backl taxes.Dated acknowledgement should be obtianed fo rthis letter. [ VVI}
Next he should contact his clients. cusotmer and see if he can bill them for the past services only the service tax. If they agree after registration he should bill. If not he should calcuate the gross amount received and divide by 1.103 ( now) reverse calcuation to arrive at the amount of ST received from customer in the past.
Then he should calcute the capital goods credit if any admnissible ( no depr on CED should have been claimed), inputs used in provding the service where ED paid and input services eligible for credit.
Then to work out the liability and pay the same with interest.
Intimate dept of action and working.

Dharmendra Verma

Dharmendra Verma (Querist)

17 June 2009 thnx mr Madhurkar N. Hiregange

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