Payment of Service Tax for previous years

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  1. krishna.Kapoor

    krishna.Kapoor New Member

    Hi,
    My client is renting immovable properties and since 2007 and she has always been above the exemption limit of Rs.10 lakhs since 2007.

    only now she wants to register for service tax !!!

    Now she is worried that if she starts paying the service tax with immediate effect,
    the service tax people will ask her to produce accounts from 2007 onwards ! and start demanding taxes with intrest and penalties

    1.What is the usual procedure for new filers of service tax followed by the department ?

    2. Or is it better to wait for another voluntary scheme ?

    3. What are the chances of Service tax department opening her case

    4. Also how come they have not tracked her even though she has filed the income tax clearly stating rent from House property ?


    Thanks & Regards
    KK
     
  2. Amit V Mahajan

    Amit V Mahajan New Member

    Dear Krishna

    pl find your point-wise revert

    1.What is the usual procedure for new filers of service tax followed by the department ?

    Usually ST gets followed up when you collect service tax from client, so since she had been doing so in past, but not collecting tax, will not effect as fresh agreement will take place and Service Tax would be charged, which needs to be deposited on regular basis.

    2. Or is it better to wait for another voluntary scheme ?

    Rare thought

    3. What are the chances of Service tax department opening her case

    10%

    4. Also how come they have not tracked her even though she has filed the income tax clearly stating rent from House property ?

    As she had been filing her Income Tax - i.e. self assessment tax, tracking is not 100% mandatory, now since she would be charging ST, same would be tax portion of tenant and hence would be deposited to department hence no chance of any tracking or negativity at all. The tenant would claim it in his relief.
     
    Karan Batra and krishna.Kapoor like this.
  3. krishna.Kapoor

    krishna.Kapoor New Member

    Thank you Amitji
     
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