Missed to pay ST

[Vijayakumar Devarajan]

I am Vijay.. started doing business from 2013 March.. I am not aware of paying service tax.. So I have to pay tax for 2013 to 14 and 14 to 15.. comes around 10 lacs.. but don't have money now. . Is there any possibility to pay as EMI or quarterly installment

[bhart b sharma]

plz state the nature of output service being provided by you. plz also furnish year-wise break-up to help find a solution to your problem, which is being faced by several assessees.

[Manoj Agarwal]

Dear Mr. Vijayakumar,

Yes, you can apply and avail facility to pay your tax and interest in installments. It seems that you have neither taken registration nor filing your service tax returns and you are not charging and collecting service tax from your customers/clients. If yes, you should be ready to receive notice from the department demanding tax, interest and penalty. Depending on facts of your case, you can escape penalty and reduce tax liability as per law.

Regards,

Manoj Agarwal, Service Tax Consultant,

+91-9937041788

AI Summary

Service tax instalment facility available; non-registration and non-filing risk departmental notices and penalties, mitigation depends on facts.
Availability of a facility to pay outstanding service tax and interest in instalments is confirmed; absence of registration, non filing of returns, and failure to charge tax expose the assessee to departmental notices demanding tax, interest and penalties, though penalty liability may be reduced or avoided depending on the specific facts and after regularising registration and returns.