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30.8.2010        
REGISTRATION OF SERVICE TAX ASSESSEES
Applicable Provisions Section 69 of Finance Act, 1994
Applicable Rules - Rule 4 of Service Tax Rules, 1994
- Service Tax (Registration of Special Category of Persons) Rules, 2005
Relevant Notifications / Circulars - Notification No. 7/2005-ST dated 01.03.2005
(Centralized Registration)
- Notification No. 26/2005-ST dated 07.06.2005
(Registration of Input Service Distributor and special category of persons)
- CBEC Circular No. 35/3/2001-CX-4 dated 27.08.2001
(STC Code)
- CBEC Circular No. 72/2/2004-ST dated 02.01.2004
(Facility of single registration for more than one service)
- DGST Circular No. F. No. V / DGST / (21) CR/ 1/ 2005 dated 09.06.2005.
(Procedure for centralized registration)
Q.1 Can the Department asks for additional information than what assessee is submitting to it in the Form ST-1?
Q.2 Whom and where should one approach for registration?
Q.3 Whether a service provider can make payment of Service Tax and file returns before the grant of registration by the proper officer?
Q.4 Is obtaining a Permanent Account Number (PAN) from Income Tax Department a must for obtaining Service Tax Registration?
Q.5 Is separate registration required for a single assessee providing multiple taxable services?
Q.6 What are the documents required for obtaining a single registration in case of multi-location service provider?
Q.7 What is the time limit for filing or obtaining Service Tax registration?
Q.8 What is the procedure for registration?
Q.9 Who should apply for registration under service tax law? Is there any provision for Centralized Registration?
Q.10 What is to be done with the registration when -
(a) A registered assessee transfers his business to another person, or
(b) A registered assessee ceases to carry on the activity for which he is registered?
Q.11 What should assessee do when service is discontinued or tax is withdrawn from a particular service?
Q.12 What are the registration requirements for registration in case of assessees who providing services from multi-premises?
Q.13 Is registration a pre-condition to the commencement of business?
Q.14 What should be done if registration certificate is not received?
Q.15 Should service tax registration number be printed on the invoice / bill as in the case of Central Excise / Sales Tax etc.?
Q.16 Whether an assessee carrying on two businesses in two trade names required to obtain two registration numbers for service tax purpose?
Q.17 What is the penalty for non registration under service tax?
Q.18 Can Central Government grant exempt from registration?
Q.19 Whether service tax registration number be mentioned on all bills / invoice?
Q.20 What action should be taken by the concerned officer receiving the application registration?
Q.21 What ate the hints for filing Form No. 1 to obtain service tax registration?
Q.22 Whether input service distributor is also required to be registered for service tax?
Q.23 How will input service provider obtain registration?
Q.24 Who are persons other than service providers who are required to obtain registration?
Q.25 For calculating rupees three lakhs value of taxable service for registration of small service providers, whether all taxable services provided by assessee will be considered?
Q.26 What is meant by aggregate value of taxable service for obtaining registration by specified persons?
Q.27 What is meant by centralized registration?
Q.28 Who will grant centralized registration?
Q.29 Whether centralized registration be obtained in case of multiple locations but where centralized accounting is not followed?
Q.30 Who is the prescribed authority to grant centralized registration under Service Tax where jurisdiction falls under more than one Commissionerate?
Q.31 How should one obtain centralized registration?
Q.32 What is the check list to be complied with for obtaining centralized registration?
Ans.1 Yes, if required, the Department may always ask for additional information.
Ans.2 Generally, all Commissionerates of Central Excise, have a Service Tax Cell, headed by Assistant Commissioner / Deputy Commissioner. However, in certain Commissionerates, separate Service Tax Divisions have been constituted. The work is also delegated to Central Excise Divisions in many Commissionerates. A prospective assessee of Service Tax can approach the Assistant Commissioner/Deputy Commissioner in charge of Service Tax cell of the Commissionerates or Central Excise Division for registration depending upon the arrangements made in the Commissionerate.
Ans.3 Yes, A service provider can pay service tax and file returns immediately after applying for registration.
Ans.4 It is not mandatory to have a PAN for obtaining registration in Service Tax. However, it is advisable for Service Tax assessees to have a PAN as Service Tax Code (STC) Number based on PAN allotted by Income Tax Department has been introduced in Service Tax also. The main objective of allocating a unique number is to identify the concerned person where he is located and registered.
Ans.5 The assessee may make a single application for registration detailing therein different services rendered by him. Facility for single registration has been clarified vide Circular No. 72/2/2004-ST, dated 02.01.2004. It has been clarified that in case of assessees providing more than one taxable service, only a single registration for all the taxable services provided by the service provider would be sufficient. Assessees should make a single application mentioning therein all the taxable services provided to the concerned Superintendent of Central Excise. The applications received for registration in Form ST-1 will be processed as per Rule 4(5) of the Service Tax Rules without questioning the correctness of the declaration made by the service provider [Also see Rule 4(4)].
Ans.6 In case of centralized accounting system for services rendered from more than one premises, following documents / information should also be furnished –
(a) proof of address of the premises / office sought to be registered.
(b) list of branch offices of the assessee.
(c) Brief note on accounting system
(d) Branch wise services of invoices maintained alongwith a sample copy thereof.
(e) Previous year’s audited balance sheet alongwith gross trial balance of different branches.
(f) Details of accounts / records maintained at different branches and at central office.
(g) Bank account numbers of the banks and central office through which receipts are deposited and transacted. (vide Trade Notice No. 76/2003 dated 06.11.2003 issued by CCE Hyderabad)
Ans.7 The Act or Rules earlier did not prescribed the time limit within which one should move an application for registration. However, w.e.f. 16th October, 1998 Service Tax Rules [Rule 4(1)] have been amended and registration should be applied for within 30 days from the date on which the service tax is levied or within 30 days of the commencement of service.
Ans.8 A prospective service tax assessee seeking registration should file an application in Form ST-1 (in duplicate) before the jurisdictional Superintendent of Central Excise within thirty days from the date of Notification of the taxable service or commencement of service. Department is required to issue the registration certificate to the assessee in Form ST-2 within 7 days of the receipt of application. In case of failure to issue registration certificate within 7 days, the registration applied for is deemed to have been granted and the assessee can carry on with his activities. W.e.f. 16.07.2001, mention of PAN is also necessary on the form.
Ans.9 All persons providing taxable services are required to register with the Central Excise Department. They would have to take only one registration even if they operate from more than one premises but have centralized billing at one place. However, if such persons do not have centralized billing at one place, then they will have to register at each place separately. Besides, only one registration can be taken even if an individual provides more than one service but from the same premises. [See Rules 4(3) and 4(3A)]
Ans.10 (a) When a registered assessee transfers his business to another person, the transferee should obtain a fresh certificate of registration. (b) When a registered assessee ceases to carry on the activity for which he is registered, he should surrender his registration certificate to the Central Excise authorities.
Ans.11 It is advisable for such assessee to get the deregistration done from the Excise Department and thereafter registration certificate should be surrendered. Thereafter no compliance is required.
Ans.12 As per Notification No. 1/99-ST, dated 28.02.1999, where an assessee is providing taxable services from more than one premises or office and has a centralized accounting system in respect of such service rendered to clients from each such premises or office at any one premises or office. The Commissioner of Central Excise may permit such assessee to registering only the premises or office from where such centralized accounting is done, if he is satisfied that such registration shall not be detrimental to the interest of the revenue. [See Rule 4(3A)]
Ans.13 No, an assessee can make an application for registration within a period of thirty days from the commencement of business or taxable service. For example, a chartered accountant commences his practice on 15th October, 2002. He can apply for registration upto 14th November 2002.
Ans.14 Superintendent of Central Excise has to grant a certificate of registration within seven days from the date of receipt of the application. If the registration certificate is not granted within the said period, the registration applied for shall be deemed to have been granted.
Ans.15 There is no statutory requirement to print the service tax registration number in the invoice / bill as in the case of Central Excise / Sales Tax under Finance Act, 1994 but assessees are advised to do so, in view of Service Tax Credit Rules, 2002 and a Notification dated 18.09.2003 issued by DGST, Mumbai.
Ans.16 Registration is to be obtained in the trade names in which the business is carried on. In case an assessee carries on two different businesses in two different trade names, he should obtain two registration numbers, one in each trade name for the respective services for the purpose of service tax. On the contrary, it two or more businesses are carried in one trade name, single registration would suffice.
Ans.17 There was no penalty for non-registration under service tax till under section 75A inserted w.e.f. 16.07.2001, a fixed sum of Rs. 500 was provided as penalty for failure to make an application registration under section 69 or Rule 4. This penal provision has since been omitted by the Finance Act, 2004 w.e.f. 10.09.2004. Section 77 of the Finance Act, 1994 as amended w.e.f. 10.09.2004 provides for penalty for contravention of any provision for which no penalty is provided (which includes failure to register) which may extend upto an amount not exceeding Rs. 1000 per failure. Thus, now w.e.f. 10.09.2004, the failure to apply for registration may attract a penalty of amount upto Rs. 1000. However, Central Board of Excise and Customs has recently advertised a scheme of complete who set registered before 31st October, 2004 and pay service tax
Ans.18 Yes, the Central Government has powers to exempt persons or group of persons or services from registration by any of notification in the Gazette.
Ans.19 Although there is no requirement of exhibiting or displaying the registration number on bills etc. in law, mentioning of service tax registration number on the invoice issued by service tax providers has been instructed to registered service providers vide Circular No. V/DGST 130- MIsc. 29/2001/3674 dated 18.09.2003 issued by Director General of Service Tax, Mumbai. W.e.f. 10.09.2004, Service Tax Rules and Cenvat Credit Rules also provide for the disclosure of registration number on the bill or invoice or challan, as the case may be.
Ans.20 The application received for registration in Form ST-1 will have to be processed as per the Rule 4(5) of the Service Tax Rule. This Rule provides that “the Superintendent of Central Excise shall after due verification of the application form, grant a certificate of registration in Form ST-2 within seven days from the date of receipt of the application. If the registration certificate is not granted within the said period, the registration applied for shall be deemed to have been granted. However, while granting registration the rule do not permit the jurisdictional officer to question about the correctness of the declaration made by the service provider. The jurisdictional Superintendent of Central Excise shall, therefore, accept the declaration given by the new assessee in the application for registration for service tax.
Ans.21 Assessees may observe the following hints for filling Form No. ST-1
1) To be furnished by assessee in Central Excise Office where his jurisdiction falls to the concerned Superintendent of Central Excise.
2) Form can be signed by assessee or his representative.
3) This form is to be filed for each premises separately or regional office or head office as the case may be where central billing is not adopted and business is carried from more than one place.
4) Fresh application should be made by any person (transferee) who has purchased the existing business of a registered service provider.
5) No time-limit was prescribed for making an application for registration but w.e.f. 16.10.1998, according to Service Tax (Amendment) Rules, 1998, application is required be made within a period of thirty days from the date on which Service Tax under section 66 is levied.
6) Non-registration would attract a penalty upto Rs. 1000 for each default.
7) If taxable service is provided from more than one premises and billing is centralized, assessee may opt for registering only the premises from where centralized billing is done.
8) Where assessee is providing more than one taxable service, he may make a single application mentioning therein all the taxable services provided by him.
9) Proof of address / residence / premises from where business is carried may be demanded and should be attached to the form.
10) For partnership firms, department can ask for a copy of partnership deed as a evidence of partnership, which may be supplied.
11) In case of a limited company, power of attorney and copy of Memorandum and Articles of Association should be submitted.
12) Income Tax PAN is also required to be mentioned.
13) STC Code number must also be obtained.
14) Any change in address or constitution or business should be informed to the concerned office of service tax.
Ans.22 Yes, though an input service distributor does not provide any taxable service, he is required to be registered for Cenvat credit purposes as registration number is a mandatory requirement to claim Cenvat credit.
Ans.23 The input service distributor shall make an application to the jurisdictional Superintendent of Central Excise in such form as may be specified, by notification, by the Board, for registration within a period of thirty days of the commencement of business or the 16th day of June, 2005, whichever is later.
The form and manner shall be prescribed separately.
Ans.24 Section 69(2) empowers the Central Government to specify such persons or class of persons who shall make an application for registration. Accordingly, as per Notification No. 26/2005-ST dated 07.06.2005, following persons are required to obtain service tax registration w.e.f. 16.06.2005-
(a) Input service distributor
(b) Service provider whose aggregate value of taxable services in a financial year excludes rupees three lakhs
Notification No. 27/2005-ST dated 07.06.2005 has notified Service Tax (Registration of Special Category of Persons) Rules, 2005 w.e.f. 16.06.2005.
Ans.25 Where a provider of taxable service provides one or more taxable services from one or more premises, the aggregate value of all such taxable services and from all such premises and not separately for each services or each premises shall be taken into account for computation of aggregate value of taxable service.
Ans.26 Aggregate value of taxable service means the sum total of first consecutive payments received during a financial year towards the gross amount, as prescribed under Section 67 of the said Finance Act, charged by the service provider towards taxable services but does not include payments received towards such gross amount which are exempt from the whole of service tax leviable thereon under section 66 of the said Finance Act under any notification other than Notification No. 6/2005-ST dated 01.03.2005 dated 01.03.2005.
Ans.27 W.e.f. 01.04.2005, where an assessee is providing a taxable service from more than one premises or offices and has centralized billing systems or centralized accounting systems in respect of such service, and such centralized billing or centralized accounting systems are located in one or more offices or premises, he may, at his option, register such premises or offices from where such centralized billing or centralized accounting system are located.
Ans.28 Centralized registration shall be granted –
(a) by the Commissioner of Central Excise or the Chief Commissioner of Central Excise, as the case may be, in whose jurisdiction all the premises or offices providing taxable service and the premise or office from where centralized billing or centralized accounting is done, are located; and
(b) in case other than (a) above, by such authority, as may be specified by the Board. DGST has been appointed as the prescribed authority for granting centralized registration.
Ans.29 Where an assessee is providing a taxable service from more than one premises or offices, and does not have any centralized billing systems or centralized accounting systems, as the case may be, he shall make separate applications for registration in respect of each of such premises or offices to the jurisdictional Superintendent of Central Excise.
Ans.30 Central Government has notified (Circular No. 341/20/05-TRU dated 12.05.2005) the office of Director General of Service Tax (DGST) Mumbai as the prescribed authority to grant centralized registration of Service Tax assessees where accounting / billing is done on a Centralized basis for offices / premises falling in more than one Commissionerates. Rule 4 (2) provides for centralized registration and Rule 4(3) provides as to who shall grant such registration.
Ans.31 Centralized registration can be obtained as per the provision of Rule 4(2,3,3A) of Service Tax Rules, 1994. Assessees should submit Form ST-I to the prescribed authority alongwith necessary documents as per DGST’s F. No. V/DGST/(21)/CR/1/2005, Mumbai dated 09.06.2005. Checklist should be complied with and vetted before forwarding by the jurisdictional commissioner. He should cause verification of the application and certify the contents etc. The application for centralized registration should be forwarded through Zonal Commissioner to DGST who shall then examine and grant permission for centralized registration and intimate to Zonal as well as Jurisdictional Commissioner. The registration number in case of centralized registration shall be issued by jurisdictional commission in the following format-

[ST / CENT / COMMISSIONERATE / DIVISION / SERVICE CATEGORY / SR. NO. / YEAR]
Ans.32 Following is the checklist for obtaining centralized registration which should be fully complied with. The Commissioner shall verify the compliances-
1) Residential address of the proprietor partners / directors
2) Name and address of the ‘Authorized Signatory’
3) Address and telephone numbers of the premises / office where centralized accounting / billing is being carried out.
4) Proof of address of the premises / office sought to be centrally registered.
5) PAN / TAN No. of the assessee
6) Date of provision of taxable service /s
7) Whether the application is on the basis of centralized billing or centralized accounting system?
8) List of taxable service / services to be rendered
9) Whether intimation of application for centralized registration is given to the jurisdictional Central Excise / Service Tax Commissionerate.
10) Bank account numbers of the branches and the central office through which the receipts are deposited / transacted.
11) List of branches, offices or premises of the assessee along with postal addresses, email addresses and telephone nos. and the name of the persons in-charge at each premises.
12) Brief note on accounting system adopted by the assessee clearly indicating method of accounting at Central Office in respect of services rendered by branch offices and method of detecting errors in the data sent by the branches so as to ensure that no transaction remained unaccounted. An Undertaking to be given by the assessee to make available the required information, records and data within 10 days, to the Audit team at the time of audit of service tax records.
13) List and description of records maintained at the branches and the premises where such centralized registration is required (separate list should be attached)
14) List of reports together with their detailed description, submitted by the branch offices, to the Head Office.
15) The assessee shall submit to the jurisdictional proper officer a recapitulation statement indicating the service wise quantum of services rendered at each location and the amount of service tax paid.
16) Whether transmission of reports / data / information by the branch offices is on hard copy / soft copy / electronic transmission?
17) Whether recoveries are effected through credit / debit noties?
18) Whether there is any clause of penal interest in case of delayed payments received by the assessee from the service recipients?
19) In case of centralized accounting system, branch wise series of invoices maintained along with a few sample copies thereof.
20) Previous year’s audited balance sheet along with gross trial balance of all branches.
21) A certificate by the Managing Director and the concerned Chartered Accountant that the information declared above is correct.
22) The concerned field officers shall annually verify that the declaration, made as above, is correct and valid.
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