Service Tax on providing gardening service includes maintaining garden

[RAMESH MANSHARAMANI]

one of my client providing gardening service which includes maintaining garden of company as well as alloted road by govt., providing flowers pots on rent at office as well as chairman house, regular moving of lawns, procuring and trimming of shrubs and clearing of garden as well as also depute their employees on daily wages at respective garden places during govt. audit at said govt. undertaking, concerned officer direcly reported to service tax dept., and said dept. issued notice as well as summon to my client to pay service tax with penalty & interest on payable service tax while my client has neither collected nor raised service tax amount in its bill but under contract there is a condition mentioned that quoated rate is excludes service tax if applicable. my client has not obtained service tax registration since said activities commenced. now i need your guidence how to deal with said issue with service tax dept., ca ramesh k m [email protected]

AI Summary

Gardening Service Provider Faces Government Audit for Unpaid Service Tax; Options to Resolve Penalties and Interest Discussed. A client providing gardening services, including garden maintenance and flower pot rentals, was audited by the government and reported to the service tax department for not registering for service tax or collecting it from clients. Despite a contract clause stating rates exclude applicable service tax, the department issued a notice demanding payment with penalties and interest. The client seeks guidance on dealing with the issue. The response suggests paying the service tax with interest and considering litigation for the penalty. Alternatively, the client may pay a reduced penalty if settled within 30 days of the initial order.