Information asked by Service tax survey Section.

[vinay wakde]

Recently we have received a letter from the Superintendent (Servey), service Tax Department for  submitting the  payment details of all the Services providers for FY 2012-13. We have submitted the list of service providers, their address & Service tax Registration number and also requested to visit the factory for verification. However, the Superintendent (Survey), Service Tax  is insisting us to submit payment details (service provider wise) for the FY 2012-13 on CD.   Kindly advise us in the matter.  Is there any legal  provisions  to collect such data from Service Tax recipient.

Regards,

VINAY

 

[YAGAY andSUN]

Yes, the revenue department has all powers to ask/demand/collect informtion/documents.  If you deny, then, they may issue summons on you.

[Brijesh Verma]

In my opinion, your duty gets exhausted immediately when you have furnished accurate names, addresses and contact numbers along with STC No. of your vendors.

You may softly make a request that under rule 9(6) of the Cenvat Credit Rule, 2004:  all an assessee is required to do is 

"(6) The manufacturer of final products or the provider of output service shall maintain proper records for the receipt and consumption of the input services in which the relevant information regarding the value, tax paid, CENVAT credit taken and utilized, the person from whom the input service has been procured is recorded and the burden of proof regarding the admissibility of the CENVAT credit shall lie upon the manufacturer or provider of output service taking such credit."

Therefore such a burden regarding admissibility will only arise when the department raises a doubt regarding non-admissibility...

 Please take a strong stand and do not submit to any sort of harassment 

[MANDAVILLI RAMAKRISHNA]

take a acknowledgement and issue in CD form if you can otherwise inform them that you are not able to give in CD form and submit the copies of the data previously submitted.

however, it is better to extend cooperation to the department at zero cost to your entity.

 

[Rajesh Sharma]

I dont agree with the opinion given by Mr. B. Verma, It seems that the department wants to know from your data that whether the service providers have discharged their ST liability. Therefore, you must cooperate with them. And should not adopt the tactics advised by Mr. Verma.

[Brijesh Verma]

Its just an opinion and not any negative tactics. You have already extended co-operation. We never support a view that we must act anti-department but any demand which is not within the four corners of law can not be entertained.

[MANDAVILLI RAMAKRISHNA]

I do not agree to the comments of Mr. Rajesh.

According to the law, an assessee is required to submit data when his tax credit is examined or when his data is required to examine the correctness of third party's tax credit. Tax laws require persons to pay taxes on their activity but can not harass any person for their comfort. We can not run a company for responding unnecessarily every day for every silly question/ query. When we discharged our tax liability our obligation is fulfilled. That is enough and more than that Law can not insist any person.

More over, using the words like ' tactics ' is not correct. 

No body in this forum participates to give tactics as the recipients are not known and no advantage is gained by any expert.

Kindly withdraw your comment so that experts like Mr. Brijesh Varma can participate and educate and guide the members regularly even they are very busy.

[Guest]

It is better to co-operate and provide the information called for as per your convenience if it is easily available in order to avoid further problems. Otherwise be ready to face the wrath which is avoidable I feel.

[Brijesh Verma]

Ashok sir,

even we are of the same view, but the problem which the Ld. queriest is facing is far aggravated than a mere request from department. The department wants him to prove the tax payments of all his input service providers of whom he took credit and further wants him to provide the whole info on CD

[Guest]

This is ridiculous, it is not the responsibility of the receiver of the service to prove as to whether the service provider has remitted the service tax. In this connection refer recent Honorable Supreme Court judgement in the case of KAY KAY Industries (2013 (8) TMI 772 - SUPREME COURT) = 2013 (295) ELT 177 (SC). The law only expects to take reasonable care and it need not required to verify the payment by the assessee.

[Brijesh Verma]

Thanks Ashok sahab for upholding our views and providing such a vital judgment !!!

[MANDAVILLI RAMAKRISHNA]

thank you Mr. Ashok

[Anoop Bhatia]

Yes, the revenue department has all powers to ask/demand/ collect information/documents.  If you dny, then they may issue summons on you.

[rajkumar shukla]

with reference toSri  B.verma post dtd 25/10/13, I would like to add that dept wants payment details and not service tax payment details. See the query.

[Guest]

May be they want the payment details for the service received, since, if the payment is not made for the services in 3 months max for the services then you have to reverse the credit availed, however, you can avail credit again once payment is made.

Please discuss the actual requirement of the department as may be they intend to check this aspect.

 

[Guest]

As per my knowledge the section under which Suptd was empowered to scrutinize returns i.e. section 71 was withdrawn for obvious reasons in year 2004. Thereafter if Superintendent is required to investigate he has to be authorized by officer not below Deputy Commissioner with reasons recorded in writing. However not withstanding the provision which only means to prevent the exploitation of taxpayers, there is no doubt that Government can look in to any transaction to check revenue loss or tax evasion. However giving data on CD i.e. soft copy can be tampered with. Therefore while writing CD make it tamper proof. Secondly provide a hard copy i.e. print out of the data given in CD and put a rider that soft copy is provided only for convenience and data in print out form is to be considered as authentic.

AI Summary

Tax information demand: authorities may require provider payment records but recipients must exercise reasonable care before sharing. Revenue authorities can lawfully demand information and documents and may issue summons for non compliance. A recipient's core obligation is to maintain input service records to support CENVAT credit; the burden to prove admissibility arises if the department challenges credits under rule 9(6). Recipients are expected to exercise reasonable care, not to verify each provider's tax payments independently. If supplying electronic data, provide a tamper resistant CD alongside a printed copy and obtain acknowledgment; confirm any superintendent investigatory authority or required higher authorization before wider disclosure.