Save Rs 499 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Service tax not known to be paid and now penalty is huge

Queries 226 views 2 replies

Sharmeen Hamid

4 Points Posted on 27 June 2016

My dad has a hotel in Lonvla n we had given it on rent to some guy before 6 years that too for 5 years we gave on rent . And we din know that we have to pay government service tax also separately . And now after 5-6 years government has made a huge bill on us stating that we need to pay service tax for these many years and we din know only , we were not aware of . What do we do now cos it's a huge amount and our CA or no one told us about this tax .
Nor did the govt inform us about this earlier

please help please

Replies (2)

m r gopal

ASSTT GEN MGR(FIN & ACCTS)

51 Points Posted on 27 June 2016

you cannot be tutored on every thing. ignorance is no excuse. if no scn is issued please calculate the tax alongwith int and pay it up. you can avoid penalty.
you auditor must have advised you, since he would hv verified the demand of rent raised by you which has not shown service tax.

SOMNATH MALLICK

CENTRAL EXCISE & SERVICE TAX SUPERINTEND

32 Points Posted on 28 June 2016

your activity should fall under category of "Renting of Immovable Property" Service. If you rental Income is more than 10 lakhs per annum then you are liable to pay Service Tax. If you have received any communication from Service Tax Department for payment of Tax for last 5 years, get the calculation of quantum of Tax and pay the same along with Interest and Penalty.