Hello Members,
One of my clients is an architect & interior designer. He also comes under the category of “Construction Services”.
But while registering him with Service Tax Department we forgot to add the service of “Construction Service” and hence Certificate mentions only Architect & Interior Designer.
Since this was not noticed either by us nor by the client, he had been collecting Service Tax for Construction Service by taking abatement of 33% and has paid it to the Government Treasury.
But now, it has come to the notice and we would like to add the “Construction Service” in his certificate.
Now if we add this service by amendment of certificate, is the previous Tax Collected & Paid to Government liable to forefeiture as he was not authorised to collect tax in behalf of this service ?
Since the amount runs into lakhs your early response with relevant case laws or sections will be very helpful.
Thanking you,
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Due to inclusion of various services in the tax net, this problem of inclusion of new service in registration certification is offen left.
As per my opinion, there is no default, because the client is alreday having registration No. and it has validly collected and deposited ST. inclusion of the new services are just technical/procedural lapse. You have neither cheat the department nor have evaded tax. you should get the new service in the registration now onward.
On lighter side – revenue department & PC is interested in more revenue collection only. if you forget tax then it will be problem and not a vice varsa.
Regards.