service tax not deposit

Queries 859 views 2 replies

Hi all,

I know a pvt ltd company who is in print media service, this company is charging service tax @ 10.3% from their customers, i came to know that this company is not depositing amount of service tax charged from their customers and it has not taken any service tax registration number, as we talk to them they said they have applied for the same, but a long time has been passed they have not obtained any service tax registration number.

 

Please let me know is he liable to pay service tax and what will be penalty on this company,

other thing is that how we can complaint against these company, who is doing such illegal things  and making loss to country.

Replies (2)

Hi, Naresh

Your first question was regarding non receipt of service tax registration number evenif applied for registration for service tax number.The answer of this  "The registration certificate will be granted by the department, in Form ST-2, within seven days of filing of an application complete and properly filled up. In case registration certificate is not issued within seven days, the registration is deemed to have been granted."

Your second question was regarding whether the company is liable to pay service tax and is there any penalty. The answer of this, "yes, he is liable to pay service tax. Any amount collected by a person as service tax from any other person, even if it was not permissible in terms of the service tax law, is required to be deposited with the Central Government.  In other words, no any amount collected as service tax shall be retained by the person who has collected such amount. Any delay in depositing such amount attracts simple interest at the rate prescribed under section 73 B of the Act. At present, the rate of interest is 13% per annum (notification No. 8/2006-ST, dated 19.4.2006)."

Above all answer is with reference to the Circular No. 97/8/2007 dated 23rd August,2007.

Many many thanks for your reply, another question is that how and where we can complaint against these company, who is doing such illegal things  and making loss to country.

 

Regards,

Naresh

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