penalty under service tax

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..... penalty under service tax
Query (Issue) Started By: - satbir singh wahi Dated:- 19-6-2014 Last Reply Date:- 20-6-2014 Service Tax
Got 2 Replies
Service Tax
Audit party has detected service tax on Rent of immovable property . Service tax and interest at the rate of 15 p.a. has been deposited . Whether penalty will need to be deposited. Reply By Pradeep Khatri: The Reply: Dear Satbir, .....

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..... In the Finance Budget 2012 there was a notification which stated that if service tax on renting of immovable property was deposited within six months (if not paid earlier due to pendency of this matter in various courts of India), then, no interest and penalty would be levied. Further, ACES was in force. You would had seek the benefit of such Schemes to avoid any interest and penalty. But in y .....

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..... our case, the Audit Party has deducted this non payment of Service Tax on Renting of Immovable Property. Therefore, in our opinion Department may impose penalty on your organization. However, you may avail the benefit of Section 80 of the Finance Act, 1994 for not imposing the penalty on your organization. Regards Team YAGAY & SUN (Management & Indirect Tax Consultants) Reply By R Ashok: The R .....

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..... eply: dear satbir, There may be genuine cases, where the assessee may not be knowing his service tax liability; ( let us assume & proceed on this assumption ) Then in such cases, the assessee may use the provisions contained in Section 73(3), to avoid levy of penalty. To avail this benefit, the assessee should pay both service tax and interest before the serving the show cause notice. Then the a .....

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..... ssessee should intimate the details of payment to the central excise officer . ( pl refer Sen brothers Vs. Commissioner of central excise, Bolpur - 2014 (33) S.T.R. 704 ( TRI - KOLKATA )= 2013 (12) TMI 433 - CESTAT KOLKATA Ashok ​Chartered accountant, coimbatore
Discussion Forum - Knowledge Sharing .....

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