Dear Sir , Good Morning I have received summons from Tax evasion dept of service tax that I have not paid service tax from 2012 till 2017 ..so with heavy penalties now they are asking to pay around 14 to 15lakhs as tax arrears But sir , When I was working in the company I didn't knew , I have never collected nor company has paid me the service tax , further there is No loss to the govt because the same is not claimed by the company ...Now they are asking to pay the tax from my personal income , I m a teacher sir and I can't pay such huge tax ,...Please guide what to do
Please elaborate the background, what were you doing for the company. On what services are they asking for service tax.
If you were working in the company as an employee then there is no need of service tax as employee employer relation is exempt from service tax.
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Thank you
What was the nature of service provided by you to the company?
Hi,
Hope you are doing well !
It depends on nature of services provided by you.
Thanks & Regards,
Payal Chhajed
I was teaching to CA in a coaching classes MT Educare Ltd and filed form 16A
If the income is more than 10 lacs in Form 16A then service tax was applicable to you. It was your responsibility to collect service tax.
Sir , I didn't collected so now they are imposing huge penalties and about 14lakhs to pay .....any remedy sir
Since you were basically their employee you need not pay service tax the institution will be service tax on their receipt and since you are saying you have filed form 16A you have shown salary income so you need not pay service tax.
Just reply to notice saying that you were an employee and not a professional providing services and as per service tax law no service tax is required to be charged on employee employer relation.
Were your receipts during this period more than 10 lakh a year?
Please call.
But sir Form 16A is for professionals rigjt then why will they consider it as a salary But they will take it as a professional fees
When the aggregate value of services provided exceeds Rs. 10 lakh in a particular financial year, then the consultant required to pay service tax.
However, in regular employment, an employee is not required to comply with service tax regulations.
Now, you can simply reply the notice saying that you were an employee and not a consultant.
Ok it's form 16A, I got confused between form 16 and 16A. If it's form 16A and they were deducting TDS as a professional and if your receipts were above 10 lakh then it's your responsibility to collect service tax.
You need to pay service tax.
Hi,
- Form 16A is for non-salaried persons. It was the duty of the service provider to collect and pay service tax unless covered by reverse charge mechanism. It was professional fees that's why the officer is asking for interest and penalty from you.
Thanks
Hi,
If your professional fees for teaching was higher than 10 lacs per annum, then you were liable to collect and pay service tax.
If you have missed it, then the department will charge at least interest and tax. You can argue for not leving any penalty.
Hi,
It is form 16A applicable to professional.
If the aggregate value of services provided exceeds Rs. 10 lakh in a particular that year, then you were required to collect service tax.
So, you need to pay service tax.
Thanks & Regards,
Payal Chhajed
Hi
If you were taking professional fees then you were liable to pay service tax in case fees exceeds 10 lacs in a year.
Service tax not charged for salaried person.
As you mentioned that you were taking Form 16A ,it seems that you were consultant there,not employee.So you are liable to pay service tax.
Hope it helps
