One of our client has received a show cause notice for non payment of service tax and filing of ST Return. i need some inputs to reply the same. this will be my first reply to this authority:
I would like to bring to your notice that the Central Government has prescribed legal provisions for recovery and prosecution of defaulting assessee under Section 87 of the Finance Act, 1994. Recovery can be affected from Bank accounts, or from the customers, or by attaching the movable or immovable properties of the defaulters. Whereas Section 89 of the Act ibid inter-alia provides for prosecuting inappropriate cases. Further, it is also brought to your notice that rule 7 of Service Tax Rules, 1994 imposes a obligation to submit a half yearly return on each registered Service Tax assessee by 25 th April and 25th October every year. Any default attracts fine of Rs 500 for a delay upto 15 days, Rs. 1000/- for a delay upto 15-30 days, Rs. 1000+ Rs 100 per day from 31 st day subject to a maximum amount of Rs. 20,000 under section 70 of the Finance Act, 1994, as amended w.e.f. 08.04.2011.
During the course of the scrutiny of service tax payment made by you, It has been noticed that your service tax payment in the F/Y 2010-11 was Rs.11001. However, you have not paid any tax in F/Y 2011-12 & 2012-13. Our database also shows that in your case you have not filed your Service Tax Returns for the above period.
In this connection you are requested to furnish detailed reasons for non payment of service tax and non filing of Returns. You are also requested to file your pending ST-3 returns immediately. In case you have not paid your service tax liability, you are requested to make payment of service tax alongwith interest immediately.
Your response should reach to the undersigned within 7 working days of receipt of this mail.