Service tax query

See As per Expl to Sec 68(1), liabilty to pay ST is statutory in nature and not contingen....therefore, it is immaterial that the ST has been recovered or not from service receiver......so your neighbour liable to pay ST with Interest ....however a waiver application for penalty be made giving the reason of assessee's ignorance of ST law....Further, no benefit of VCES,2013 can be taken because the deptt already issued show cause notice....

Entired consideration has to be considered to be inclusive of service tax and service tax should be calculated by back calculation.(Since not recoved from party)

Further, benefit of vces can be availed if option if notice is issued after 28.02.2013.

You should pay the service tax for last 2 years may be interest can be waived on the ground of sympathy.

Interest can be waived only under vces scheme.

There is no power to waive interest on the ground of symathy, only penalty can be waived.