Service Tax Exemption to Small Service Providers

[KALPESH BHATT]

Hello Sir,

Thanks for your earlier reply.

However in SCN they stated that Income of ₹ 10 Lakhs has been suppressed deliberately and therefore tax is payable on it. Department has reviewed Form 26AS and compared it with form ST 3 and found the difference and accordingly raised the demand in SCN on ₹ 10 Lakhs stating that Income has been deliberately suppressed in ST return.

Hence can you please guide in submitting the appropriate reply.

Thanking You,

Kalpesh

AI Summary

Individual Accused of Suppressing Income Faces Tax Demand; Discrepancy Found Between Form 26AS and ST-3 Returns A discussion on a forum revolves around a service tax issue where an individual is accused of deliberately suppressing an income of 10 lakhs, leading to a tax demand. The department found discrepancies between Form 26AS and ST-3 returns. A respondent advises that if the individual registered voluntarily before exceeding 10 lakhs, they should have declared the entire income and claimed an exemption. It is suggested that the department cannot deny the threshold exemption, and the individual is encouraged to justify the discrepancy by explaining the threshold limit benefit. Another participant concurs with this advice.