Service Tax Registration and Collection of tax from customer

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This query is : Resolved

Bhaskara Rao (Querist)

20 January 2009 Dear Expert panel
Ours Organization is Society, doing services of Management Consultants, Business Auxiliary services, Business Support Services, HR Consultation,we are started services from April,08, Turnover Exceeds 1000000 in May'08, Up to now we are Not registered with service tax, Now we want to register and ready to pay outstanding of tax and interest voluntary , is there any penalty for this, is it Possible to collect the service tax from ours customers for before registration period, is there any section or circular, notification

Kindly reply immediately
Thanking You
BHASKARA RAO.Y

Madhukar N Hiregange

Madhukar N Hiregange (Expert)

22 January 2009 Normally at the time of registration you may intimate your intention to pay the back taxes and penalty should notbe raised. many Tribunal decision on no penalty for bona fide voluntary compliacne exists.

ST being an indirect tax should be able to collect from cuysotmer. If cusotmer is under central excise or ST then it becomes easier.
Practically cusotmers who can avil credit may reimburse the same.
SC case in All India Tax Practioners Assoication lays down that ST is a destination based consumption tax and the burden is with the utlimate receiver.

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