Service Tax payment for SERVICE TAX NOT RECEIVED ??

[hardik thacker]

Sir,

OUR ORGANIZATION IS SEMI GOVERNMENT ORGANIZATION (LOCAL AUTHORITY).MOST OF THE LANDS IN TOWN ARE OWNED BY OUR ORGANIZATION AND ALLOTED TO VARIOUS PARTIES FOR LONG TERM OR SHORT TERM

THE CHANG IN THE LEASE RENT RATE HAS BEEN TAKE EFFECT WITH APPROVAL OF "TAMP" (TARIFF AUTHORITY OF MAJOR PORT) .HOWEVER PARTIES ARE PAYING LEASE RENTAL AS PER LEASE DEED ENTERED LONG BACK.HENCE THE MATTER IS IN LITIGATION.

AT PRESENT OUR ORGANIZATION IS RAISING INVOICE AS PER NEW RATES AND PAY SERVICE ON THAT AS PER THE RULES OF SERVICE TAX.HOWEVER WE ARE NOT RECEIVING EVEN MAIN AMOUNT.

DUE TO ABOVE WE INCURRED HUGE LOSS FOR PAYMENT OF SERVICE FOR WHICH EVEN SERVICE VALUE ITSELF IS NO RECEIVING

IS THERE ANY REMEDY FOR SAVING FROM PAYING SERVICE TAX "OUT OF POCKET"

THANKS......

AI Summary

Service tax on unpaid invoices: deposit duty remains; recover tax via litigation or pursue refund after subjudice protection.
Service providers invoicing revised lease rentals but not receiving the gross amounts must nonetheless deposit service tax, while core disputes concern the definition of consideration and validity of Point-of-Tax rules. Recommended remedies are to expedite the underlying litigation to recover billed amounts (including tax and interest) and thereafter claim refunds for any excess tax paid-refund claims are not time-barred while matters are sub judice-or alternatively to mount a constitutional challenge to the POT rules or definition of consideration, recognizing such challenges may be protracted.