Service Tax to be paid on the income received under business ancillary services

Last updated: 04 October 2023

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The CESTAT, Ahmedabad has ruled that financial hardship is not a valid reason for failing to pay service tax on income received from Business Ancillary Services (BAS). The assessee in this case had received commission income but deliberately failed to disclose it in their monthly returns, despite being aware of the service tax liability. The tribunal upheld the demand for service tax and penalties, dismissing the appeal.

Court :
CESTAT, Ahmedabad

Brief :
The CESTAT, Ahmedabad in the case of M/s.Natural Petrochemicals Private Limited vs. C.C.E & S.T, Rajkot [Final Order No. A/12059/2023 dated September 18, 2023] has ruled that the assessee was aware of the chargeability of service tax upon the commission received under the head of Business Ancillary Services ("BAS") and had deliberately never disclosed the same in the monthly returns, thus the financial hardship faced by the assessee is no ground for non-payment of Service Tax, hence dismissed the appeal.

Citation :
Final Order No. A/12059/2023 dated September 18, 2023

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1 Year PLAN

1999

(Excl. of GST ₹359)

2 Years PLAN

3499

(Excl. of GST ₹629)

BEST VALUE

3 Years PLAN

4999

(Excl. of GST ₹899)

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Judgement posted by

Bimal Jain

Service

FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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