Rights available to Defaulter of service tax

[Asked by Guest]

Respected sir/madam

I work in an small company whose director had another proprietor company ,He didn't paid any service tax to one of his project which was about 10 lakhs. Now the service tax people are asking him to pay 3 times of it ,so i wanted to know what are the rights available to him and can he ask the tax authorities to give him details of his default case before giving any sorts of statement to tax authority for which they are pressurising him very much. From where can we get the details of all his default cases so that we can make payment and close the case as early as possible. it will be very helpful for my company and it's employee future if you can advice us what to do and not to do and option available to my boss as we lack in finance knowledge.

Regards

SUNIL

AI Summary

Penalty relief for bona fide service tax defaults: payment with interest within prescribed period avoids penalty.
Defaulters can obtain details of alleged service tax defaults and must be aware that departmental officers may record statements under the Central Excise Act as applied to service tax. Penalties vary by intent and timing: bona fide mistakes paid with interest within thirty days of a show cause notice attract no penalty; mala fide evasion paid with interest within thirty days of the show cause notice incurs a reduced penalty; payment within thirty days after an adjudication order incurs a specified reduced penalty that, if paid within thirty days of the order, closes the case. Depositing dues with interest and the applicable reduced penalty can conclude proceedings, or the taxpayer may demand a show cause notice and contest the case. Separate legal entities should be treated independently for valuation.