Determination of liability of service tax on the basis of payment certificate

[Sudhir Kumar]

On the basis of payment certificate for the period 2017-18, can it be possible to decide the payment made for the period April 2017 to June 2017 (Service Tax period). Whether the Sale. Tax deduction shown in Payment Certificate shall be assumed that the payment is pertaining to the period of S.Tax i.e before implementation of GST and on the basis of such details exemption befefit for the period April 2017 to June 2017 could be claimed.

The client have only payment certificate for the period 2017-18 received from the government organisation in lieu of providing exempted service as defined under Notification No. 25/2012-ST dated 20.06.2012. But the department have not considered the payment voucher date reflected in payment certificate after 30.06.2017 and issued a demand of Service Tax. The department seek agreement copy but as of now such agreement is not lie with the client. Further, the department has given benefit of exemption against only those payment which voucher date was before 01.07.2017. However, the client have provided exempted service.

Whether the department's move to issue the notice and adjudicate the case is correct. What the remedies are available for the clients now.

Please guide

AI Summary

Service Tax Liability: Payment Certificate Dispute for April-June 2017 Before GST; Exemption Proof Required Under Indian Contract Act. A discussion on a forum addresses the issue of determining service tax liability based on a payment certificate for the period 2017-18, specifically from April to June 2017, before GST implementation. The client, lacking an agreement copy, faces a service tax demand from the department, which only acknowledges exemptions for payments before July 1, 2017. The department's stance is deemed legally correct, emphasizing the need for proof of exemption. Suggestions include verifying exemption eligibility and considering implied contracts under the Indian Contract Act, 1872, as a potential remedy.