Dear Experts
EA2000 audit is going on for our Service tax registration. In year 2012 to 2014 we have made service tax payment in consulting engineering service instead of intellectual property service due to wrong classification of service. Now EA 2000 auditors are insisting to pay us service tax again in intellectual property. We argued that since payment has already been made for same service there will be no service tax payment again for same service.
Please let us know any circular for clarification and case laws in our favor
Debate on if wrong service category requires second tax payment; tax already paid under consulting engineering. A discussion on whether a wrong classification of service category necessitates a second service tax payment. An audit revealed payments were made under consulting engineering instead of intellectual property services. Auditors demanded a second payment, but it was argued that since the tax was already paid, it should not be paid again. Experts cited CBEC instructions and case law supporting that service tax should not be paid twice for the same service. It was emphasized that incorrect classification can lead to revenue loss due to potential abatements or reverse charge mechanisms, highlighting the importance of accurate classification. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
