hi......
if service provider done earthmoving & demolition work in f.y. 2005-06 in september worth Rs. 18 Lacs and has neither charged nor paid service tax. The assessee is not receiving notice issued by department.
what will be the consequences and how assessment will be done?
Not receiving notice has no meaning. The case will be decided ex parte, after serving the notice as per the procedure described by law.
It is better to receive notice and try to find ways to contest that. If no way is there, pay the tax n interest. Interest liability will keep on growing, the more u delay it.
Whether the non-apyment has been detected or not by the Department, it is always adviceable to assess the service tax on price-cum-duty basis as you mentioned service tax has not been collected and pay along with interest.
By doing this penalty imposable under Section 76 or 78 may be possible to avoided.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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