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One of my party i.e. ABC (prop. firm) is providing
repairing/alteration service relating to Comm.
Construction.. (not new construction), they have provided a
repairing/alteration service to one co-op. bank...i.e.
XYZ………. At the time of audit by central excise dept.,
officers has asked/directed to bank to pay the service tax
by the ABC (for year 07-08 & 08-09)..... Now, my question
is …..:Is my Party ABC liable to pay the service tax ?
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Answer / vsharma
Nope, if turnover of abc party does not cross the limit
specified by the service tax department for that particular
year, abc needs not to take service tax number as well as
is not liable to pay service tax.
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