REGISTRATION UNDER SERVICE TAX

FACTS REGARDING REGISTRATION UNDER SERVICE TAX

Q. What is meant by ―Registration? Who should apply for registration under Service Tax law?

In terms of Section 69 of the Finance Act,1994 (Chapter V) read with rule 4 of the Service Tax Rules,1994 –

Every person who has provided a taxable service of value exceeding Rs. 9 lakhs, in the preceding financial year, is required to register with the Central Excise or Service Tax office having jurisdiction over the premises or office of such service provider.

In case a recipient is liable to pay service tax, he also has to obtain registration.

The "Input Service Distributors" are also required to register them as per Notfn. No.Q6/Q005-ST dated 07.06.Q005 as amended.

Every person who provides taxable service and is liable to pay service tax.

Q.Why registration is necessary?

Registration is identification of an assessee. Identification is necessary to deposit service tax, file returns and undertake various processes ordained by law relating to service tax. Failure to obtain registration would attract penalty in terms of section 77 of the Finance Act, 1994, read with rule 4 of Service Tax Rules 1994. (Please also refer para Q.15 of this Booklet)

Q. What is the meaning of an ‗assessee‘ in relation to Service Tax?

As per the sub-section (7) of Section 65 of the Finance Act, 1994 (Chapter V),„assessee‟ means a person liable to pay Service Tax and includes his agent.

Q. When should a prospective assessee obtain registration?

i. When a person commences business of providing a taxable service, he is required to register himself within 30 days of such commencement of business[sub-rule (1) of Rule 4 of Service Tax Rules, 1994].

ii. In case service tax is extended to a new service, an existing service provider must register himself, unless he is eligible for exemption under any notification, within a period of 30 days from the date of new levy [sub-rule 5A of Rule 4 of the Service Tax Rules, 1994].

Q. What does the word ―person‖ appearing in the definition of taxable service mean?

The word "Person" shall include any company or association or body of individuals, whether incorporated or not. Thus, this expression includes any individual, HUF, proprietary firm or partnership firm, company, trust, institution, society etc.

Q. What is the procedure for Registration? Who should be approached for Service Tax Registration?

A prospective Service Tax assessee (service provider or service receiver) or „Input Service Distributor‟ seeking registration should file an application in Form ST-1 (in duplicate) [prescribed vide Notfn.No. 3Q/Q005 dated Q0.10.Q005 as amended Notfn. No. 11/Q008 dated 1.3.Q008] before the jurisdictional Central Excise/Service Tax officer. To verify the correctness of declaration in the said form, certain documents such as copy of PAN card, proof of address of business premise(s), constitution of the business [proprietorship, firm, company, trust, institute etc.] etc. may be required by the registering authority. The copies may be self-certified by the applicant. In case of doubts in select cases, original documents may have to be presented for verification.

Q. How much time is taken for the issuance of the Registration Certificate?

The Registration certificate should be issued within a period of seven days from the date of submission of application ST-1 along with all relevant details/documents. In case the registration certificate is not issued within seven days, the registration applied for is deemed to have been granted. [Rule 4(5) of the STR, 1994].

Q. Is there any provision for centralized registration?

Service providers having centralized accounting or centralized billing system who are located in one or more premises, at their option, may register such premises or office from where centralized billing or centralized accounting systems are located and thus have centralized registration.

Commissioner of Central Excise/Service Tax in whose jurisdiction centralized account or billing office of the assessees exists, is empowered to grant centralized registration in terms of sub – rule Q & 3 of Rule 4 of Service Tax Rules,1994

Q. In case of multiple services provided by an assessee, is separate registration certificate required for each service?

As per sub-rule (4) of rule 4 of the Service Tax Rules, 1994, only one Registration certificate is to be taken even if the person provides more than one service from the same premises for which registration is sought. However, while making application for registration, all taxable services provided by the person should be mentioned.

If there is centralized registration, only one registration certificate is required for services provided from different premises, declared in the application for centralized registration.

Q. What is to be done when the existing assessee starts providing a taxable service not mentioned in the registration certificate?

He should intimate to the jurisdictional Assistant Commissioner or Deputy Commissioner of Central Excise in writing if there is a change in any information or details furnished by him in the original ST-1 form submitted at the time of obtaining registration or if he intends to furnish any additional information or details within a period of thirty days of such change.

(As per Rule 4(5A) of Service Tax Rules, 1994).

Q. Is PAN allotted by the Income Tax Department a must for obtaining Service Tax Registration?

Having PAN is essential because the Service Tax Code/Registration number is generated based on the PAN issued by the Income Tax Department. The PAN based Service Tax Code/Registration number is a must for payment of service tax using the G.A.R. 7 Form.

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Q. What should be done with the Service Tax Registration on cessation of business of providing taxable service -?

The Service Tax Registration certificate (ST-Q) should be surrendered immediately to the Superintendent of Central Excise [Rule 4(7) of the Service Tax Rule, 1994].

Q. What should be done with the Registration in case of transfer business to another person?

In the event of transfer of the business, the transferee should obtain a fresh certificate of Service Tax registration. [Rule 4(6) of the Service Tax Rules, 1994].

Q. Whether a service provider can make payment of Service Tax and file

Returns before the grant of registration by the proper officer?

A person liable to pay service tax must apply for registration before he starts paying service tax and filing return. Service provider should apply well in advance to obtain registration, which is normally granted within 7 days of filing of application. If registration is not granted within seven days, it deems to have been granted.

Q. Is there any penal provision for non-registration?

Failure of registration may attract a penalty upto Rs.10000/- or Rs. Q00/- for every day during which such failure continues, whichever is higher [Section 77(1)(a) of the Finance Act, 1994].

However, such penalty may be waived in case the assessee proves that there was reasonable cause for such failure [Section 80 of the Finance Act 1994].

Q. What should be done in case of change in the office/place of business?

Any change in premises/office, as mentioned in Form ST-1, should be intimated to jurisdictional Assistant/Deputy Commissioner Central Excise.

Q. If a registration certificate issued by the Department is lost, can duplicate be issued? What is the procedure in this regard?

The assessee is required to make written request for "duplicate" registration certificate. The same will be issued by the Department after suitable entry in the registers/records of the Office.