Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2022 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (3) TMI 510 - AT - Service TaxRecovery of short paid service tax - Construction of Complex Service - adjustment of the excess service tax paid during period October 2010 to September 2011, during the period October 2011 to March 2012 - period from October 2011 to March 2012 - recovery of interest - extended period of limitation - demand of penalty - HELD THAT:- Admittedly the service tax on the activities undertaken by the appellants was introduced with effect from 22.06.2010. Initially appellants discharged the tax liability on the transactions undertaken by them on the accrual basis. Financial Accounting in India is mostly on the accrual basis. All the direct and indirect taxes are also based following the principal of Financial accounting on the accrual basis. In the accrual basis of Financial Accounting a transaction gets accounted for all the purposes in the books of account on the date when the document relating to the transaction are prepared - Service Tax when introduced followed the receipt based accounting system for levy and collection of tax. The assessee was obliged to pay the taxes on the basis of the gross amounts received during the taxing period. Service Tax when introduced followed the receipt based accounting system for levy and collection of tax. The assessee was obliged to pay the taxes on the basis of the gross amounts received during the taxing period. - the entire issue is because of the change in the manner of accounting of the transaction for the purpose of computation of service tax liability from the accrual basis to the receipt basis. The issue needs to be adjudged in the favour of appellant - appeal allowed - decided in favor of appellant.
|