What is the rate of Service Tax? Pay only10.2%?
As on today, it is 10.2%, if you go by what a Chief Commissioner informs the world. Where can you get correct information on Service Tax? Certainly not the Service Tax offices. A netizen who is incidentally a Central Excise officer sent us this picture. This is a huge hoarding outside a Chief Commissioner’s office which loudly proclaims that the rate of Service Tax is 10.2%.
The Netizen who sent us this picture asks, “Can an assessee pay 10.2% and claim that he paid the tax at the rate advertised by the Commissioner and Chief Commissioner? Sadly, the answer has to be a “no” as there is no estoppel against the statute in these matters. But what will happen if somebody pays 10.2% and claims that he paid the amount as per the advertised rate of the government? And that too right in front of the Service Tax office? It is nearly nine months since the rate of Service Tax has been made 12.24% and the hoarding outside the Chief Commissioner’s office continues merrily proclaiming the Service Tax rate as 10.2%. And if anybody pays at the rate of 10.2%, this very department will charge suppression, evasion, and mis-statement and will demand interest and penalty.
DDT hopes and wishes that the Chief Commissioner would spend a little paint to correct the position. We will wait for a week and let you know who the Chief Commissioner is who wants to collect only 10% instead of 12%, if it is not corrected by then.
And please don’t get angry with us; we are only trying to help you!