An apartment association has collected Rs 61 lakhs for the maintenance of Apr May and June 2014. and for all flat monthly maintenance is exceeding 5000.
So the service tax comes around Rs 7.56 Lakhs. Now the third party handling the maintenance was paid for April and May in July and that too on provisional. No bills were raised.
Now association has tax liability of Rs 7.56 lakhs and they want to wait for the actual bills and challan of service tax paid from the third part vendor . so that association can avail CENVAT credit and pay 7.56 lakhs. Rest interest for delayed payment around 20-30K will be paid directly to service tax department. Therefore they are not registering for service tax as well right now.
Like this association will not have to pay 7.56 lakhs and just have to pay Rs 30000 approx. Is this approach a correct one and legally justified?
CAclubindia
