Penalty

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C.A. HIREN (Querist)
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07 May 2015 Dear Sir,
There is survey in client's premises (Builder) by Income Tax Department and our client has declared Rs. 4 crore to Income Tax Department. Also our client has paid Service Tax on Rs. 4 crore. Then Service Tax Audit has been conducted by Service Tax Department. Now, Service Tax department said that you have to pay penalty on Rs. 4 crore which was disclosed under Income Tax Act. So, we are liable to pay penalty to Service Tax Department...?

Sandeep Dharar

Sandeep Dharar (Expert)
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07 May 2015 Dear Hiren, can u elaborate that ST part, which was paid on 4cr.??

Means, if the client has not deducted or not deposited or late filing of ST return for the year under review, then the client must have to pay Penalty for non deduction and non filing.

C.A. HIREN

C.A. HIREN (Querist)
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08 May 2015 Dear Sandeep,
Thanks for your kind reply.
My question is we disclosed income under I.Tax Act. And on next day we paid S.Tax on Rs. 4 crore @12.36% and also filed the return in TIME. But S.Tax department saying that you disclosed income under I.Tax so you have to pay penalty.

Karan Chandna

Karan Chandna (Expert)
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09 May 2015 I think you should reconcile your income as per financials and Service Tax return.. In case service tax is properly paid on all income streams, then no penalty applicable...Karan 9871563826

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