Payment of Service Tax

[JANARDHAN BUDDHATHI]

Hi, As we are importing services we are deemed as service provider and paying the taxes accordingly. But every month services received are adding in addition to services we registered. Hence we paid service taxes under one accounting head. Can you please tell me the way we can justify our issue with dept.

 

Thanks,

 

[rajkumar shukla]

Although every new service needs to be endorsed in the registration certificate, yet even if service tax has been deposited in single head ,dept. can not raise demand in view of c.b.e.c. circular no. 58/7/2003 ST (fno. 159/2/2003)dtd 20/5/2003.

[YAGAY and SUN]

But Department may impose penalty for not inclusion of such service in the registration certificate.  Please comply with the provision of service tax immediately.

AI Summary

Service tax on imported services: consolidated tax deposit prevents departmental demand, but registration omissions may attract penalty.
When imported services are taxed by the recipient as a deemed provider, depositing the service tax-even under a consolidated single accounting head-satisfies the substantive tax liability and precludes a departmental demand, but separate statutory requirements mandate endorsement of each taxable service in the registration certificate and omission may attract penalties, so registrations should be regularised and compliance maintained.