The Central Board of Indirect Taxes and Customs (CBIC) rendered that the GST Officer provide show-cause notices on the grounds of the difference in ITR-TDS data and service tax returns postponement to the proper verification.
Through several trade authorities and the council, the board obtained the representatives towards the instances of indiscriminate issuance of demand notices through the field formations upon the grounds of the ITR-TDS information obtained via the Income-tax department.
During examining of the ITR-TDS information obtained from the Income-tax the board rendered the field formations, a reconciliation statement has seeks from the assessee towards the difference and if the service income obtained through them towards the respective time is related to any kind of negative list services mentioned under Section 66D of the Finance Act, 1994 or exempt from payment of Service Tax because of any reason. It was then again said that the demand notices might not be provided indiscriminately upon the grounds of the variations amid ITR-TDS taxable value and the taxable value in Service Tax Returns.
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“It is once again reiterated that instructions of the Board to issue show-cause notices based on the difference in ITR-TDS data and service tax returns only after proper verification of facts, may be followed diligently. Pr. Chief Commissioner /Chief Commissioner (s) may devise a suitable mechanism to monitor and prevent issues of indiscriminate show-cause notices. Needless to mention that in all such cases where the notices have already been issued, adjudicating authorities are expected to pass a judicious order after proper appreciation of facts and submission of the notice, the CBIC comments.”
