Consequences - registration under wrong category

[madhavvan n]

what are consequeces under service tax provisions if the registration is taken under a wrong category

[Rama Krishana]

It is procedural mistake only. By no means of imagination, department can treat the service tax paid in wrong category as non payment of service tax at all. It is true that department is issuing demand notices (show cause notices) where the service tax has been paid in the wrong category, but the law would prevail in the long run and the assessee would get the justice.

[Rakesh Chitkara]

Penalty ? On whom ? The assessee or the department officials who should have guided the assessee in the first place. Don't bother Sir. So long as the amount of tax paid is correct and wrong category has not been with a view to claim unjustified abatement, nothing to worry.

AI Summary

Registration under wrong service category is a procedural error; correct tax payment prevents it being treated as non payment. Registration under an incorrect service category is a procedural mistake; if the correct tax amount has been paid, the error does not amount to non-payment. Administrative notices may be issued, but legal relief is available where misclassification was not intended to secure an unjustified abatement, and penalty exposure normally requires evidence of intent to improperly reduce tax.