Beski 26 August 2016

Service tax

Service tax is claimed when service delivery is not completed fully. As per agreed procedure, service provider has to deliver a audit report within 7 days from the date of audit completion. More than 6 months over and not submitted the report. But they billed for service tax. Is this correct as per Service tax law? I appreciate your expert response

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Ms.Usha Kapoor (CEO) 01 September 2016

Dear Client,

In case the service provider has not provided or not completed full service and delivered to you or if the service relates to building a house/Flat etc no Service tax is payable for building under construction. In the instant case also he has not completed the service and committed breach of providing service on time and committed breach of submitting Audit report on promised time and unduly delayed he has no legal right to raise Service Tax Bills on you. you need not pay any ST till he completes the service. The service provider incurs penalties also for brech of his commitments under serviuce Tax Law.