TMI BlogWhether the recipient of services (import of services) is liable to pay Interest and Penalty in case of late payment of service tax?X X X X Extracts X X X X X X X X Extracts X X X X ..... Whether the recipient of services (import of services) is liable to pay Interest and Penalty in case of late payment of service tax? - Commentaries / Editorials Dated:- 14-12-2007 - News - The issue A limited notice was issued to the effect as to whether the appellant - Kerala State Electricity Board, the service recipient, within the meaning of provisions of Finance Act, 1994, levying servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce tax, is liable to pay any interest on the amount of tax due to the respondent. The appellant urged that the liability to pay interest and penalty being statutory one, the service provider was responsible therefor and not the service recipient. Findings and decision of High Court Despite the said contractual commitments, the appellant failed and/or neglected to pay service tax on behalf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of foreign company. It, on the other hand, raised a dispute that having regard to the purported statutory obligations of the service provider as contained in the Act and the Rules framed, it was not liable to pay any service tax. By reason of the impugned judgment, the Division Bench of the Kerala High Court construing the provisions of the Act in the light of the terms of the contract entered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... into by and between the appellant and the foreign company opined that the liability in that regard was on the appellant and not on the foreign company. Decision Honorable Supreme Court has upheld the decision of high court. According the recipient of services shall be liable to pay interest on late payment of service tax. (For full text of judgment - visit - 2007 -TMI - 2362 - Supreme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court of India ) - News - Press release - PIB Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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