Service tax registration

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udit (Querist)
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04 October 2012 Assessee is a Civil Works Contractor from past 15 years. The Gross Turnover is above 80 -90Lakhs. Due to ignorance of law, assessee failed to obtain registration under the bona fide belief that since their Works Contract Tax and Income Tax are being deducted there is no other tax liability. In the Current Year due to reverse charge mechanism the service recipient deposited 50% tax with the government. From this the assessee came to know about their liability. Now at the time of registration the department seeks bank statement for past 5 years. Please advise what the assessee should do to avoid harsh penalties under the service tax act.

U S Sharma

U S Sharma (Expert)
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04 October 2012 no way to escape from indirect taxes.

udit

udit (Querist)
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05 October 2012 Can you please tell me the time for which demand can be raised by Deptt...

U S Sharma

U S Sharma (Expert)
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05 October 2012 department can go upto 5 years back at 1st instance, but when evasion and malafide intention of assessee is found there is no time limit.

udit

udit (Querist)
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05 October 2012 Assessee provides service plus material to the recipient. How will service portion will be arrived at. Assessee does not provide breakup in the invoice.

U S Sharma

U S Sharma (Expert)
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05 October 2012 its indirect taxes, they have direct access to sales tax, incometax and other concerned departments, they can collect data randomly.

try to settle at superintendent/ AC level, higher authority levels are bitter experience

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