GST Network avoids service tax to receive alert notice from service tax department
By F9 Team : 18-Feb-2017
NEW DELHI: Both the Central and State government officials had paid a hefty hundred crore to the Goods and Service Tax Network for supplying the IT resource materials for the smooth running of the company.
The GST Network Pvt Ltd, GSTN, has been issued with a legal summon for deliberately avoiding service taxes. Prakash Kumar, the Chief Executive of the company had received a legal summon from The Service Tax Department who had even ordered him to furnish the proof of the credentials by February 22nd, 2017. The Service Department had constantly been observing GSTN and its patterns of negligence on the core subject of tax payables.
The legal notice which was directed to the CEO clearly states about the necessary documents and records that the company had to present before the tax committee for cross examination.
In the event of failure of the organization’s performance in paying the timely tax, the executives would be entitled to face stern punishment under the court of law. However, the ceo had denied on the receiving of the court summons as of now.
Meanwhile, the Finance ministry had informed the tax department about GSTN who had received Rs.350 crore from the central government.
Any considerate reward received by an entity from another source is taxable. Similarly, GSTN who had received tangible cash consideration from the Government is responsible to pay their taxes promptly.