Notice received to pay arrears

[Asked by Guest]

I received notice from anti evasion division on 12th October 2017, that I had not even registered for sevice tax and was providing taxable service. I was consultant to tvs motor company. I was unaware about the process and had not registered. It relates to last 3 years. The window for new registration is closed, so how to register and how to pay arrears. Request advice please

[KASTURI SETHI]

The matter should be brought to the notice of the Director, ACES System, Chennai. This site is still working and it will not be closed. So many past cases are pending decision and assessees will have to deposit Service Tax under ST Codes and not under GST. The option for cancellation of ST registration has also been closed. Govt. will open both options/provisions in the system. You must approach 'help desk ' of ACES or may contact Director on phone. Your problem will be solved.

[Nash Industries I Pvt Ltd]

Please refer to para 3.0 and 3.1 of CBEC Circular o 207/5/2017-ST dated 28.09.2017.

Extract of the relevant portion:

3.0 Payment of service tax on or after 01.07.2017 as a consequence of detection of evasion or any other circumstances.

3.1 The issue will arise only in the case of assesses who were not registered under ACE. It may be recalled that in the registration module of ACES, there is a category of "non assesse registration." This may be used to obtain registration and make payment of service tax. Any difficulty in this regard may be resolved with the office of ADG, Directorate of Systems and Data Management, Chennai.

However, would like to check whether the turnover was less than 10lacs pa in those years. If the value of services rendered is less than 10 lacs pa then the question of registration of does not arise. Register only if the value of services rendered in any year is more than 10 lacs.

Under the GST, the threshold is 20 lacs pa.

Hope this clarifies.

Regards

S.Ramaswamy

[KASTURI SETHI]

Sir,

Thanks for throwing more light on the issue. and enrichment of my knowledge. I was not aware of circular dated 28.9.17

Dear Sirs,

The value of services rendered was more than 20 lakh.

Regards

[Mr Rao]

Dear querist,

When your value of services is more than ₹ 10 lakhs, you need to follow the procedure explained by Shri Ramaswamy sir, and pay the arrears.

AI Summary

Service tax registration requirement: non-registered service providers must register via ACES and pay arrears under service tax codes.
A notice alleged supply of taxable consulting services without registration for three years; affected persons must obtain registration via the ACES non-assessee registration category and pay arrears under service tax codes. Systemic or procedural difficulties should be resolved with the ACES help desk or the office of the Director/ADG, Directorate of Systems and Data Management, Chennai. Registration is required only where annual service value exceeds the statutory threshold; if below that threshold registration is not necessary. The cancellation option in the system is currently closed.