Service Tax on legal expenses, Service Tax

[Ravindra Gajelli]

Dear Sir,

 

I would like to know How the service tax department keep a track of service tax of legal service provider who is not liable to pay service tax but 100%by the service recipient. What is if the service recipient forgot to pay the service tax on such services. How the government reconcile such situation.

Posts / Replies

[Pradeep Khatri]

The Government Official may seek information from your Books of Accounts, Bank Statement, Profit and Loss account, List of litigations, and from your Balance Sheet.

It is advisable to pay service tax honestly.  Be proactive and reconcile your accounts on your own even before department's audit etc.