service tax

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boss of the game

manager

25 Points Posted on 06 April 2010

I have my firm got registerted in the month of april2009- with service tax dept,. But I have been in to buisness since 2005-06,06-07,07-08,08-09,- , for the last 4 financial year my turn over exceeeded 20 lacs,.

But I did late registration and started paying service tax from april 2009 onwards,

I received show cause notice on march 2010, asking me to pay the dues for the year 2005--06,07-08,08-09 period.

Now I decided to pay the dues with interests, for the last 4 financial year.

whether I will asked to pay for the penalty ? or only I have to pay with interests.

pl advise

Replies (2)

PRATIK P MEHTA

Final Student articles

162 Points Posted on 08 April 2010

As they have send you a notice you have to pay penalty but you can go appelate fro exemption in penalty

P.Bashista

Advocate

378 Points Posted on 08 April 2010

The basis behind imposing a penalty and interest is that the penalty is a monatary punishment and the interest is imposed because it iis a loss of interest to the government on that amount of duty which you did not pay.

But if you have any doubts on the applicability of the duty then you should contest it, untill and unless your service is clearly covered under a heading of service tax.