Awareness of Service Tax Applicability at the time of rendering the services.

[Asked by Guest]

I WANT TO KNOW IF SOME PERSON DONT KNOW THAT HIS SERVICES COMES UNDER THE CRITERIA OF SERVICE TAX. AFTERWARDS HE COMES TO KNOW ABOUT IT,THEN HE HAS TO PAY SERVICE TAX OR NOT AS IT IS A INDIRECT TAX &BURDEN IS TRANSFERED TO CUSTOMER AS NO SERVICE TAX IS CHARGED FROM CUSTOMER ANY RELAXATION CAN BE CLAIMED PLZ EXPLAIN

[Surender Gupta]

There are various supreme court ruling in which it has been held that ignorance of law is not an excuse. Yes if you were bonafide and if you can prove that there was malafile intention on your part, no duty can be demanded against you beyound one year from the date of notice received by you, if any.

AI Summary

Ignorance of law not excuse: service providers remain liable for service tax, with limitation protection if bona fide shown.
Service tax liability attaches despite a supplier's lack of awareness; ignorance of law is not an excuse. If liability is later established, the supplier remains responsible to pay, although proof of bona fide conduct and absence of mala fide intention may invoke limitation protections so that duty cannot be demanded beyond one year from the date of any notice.