.Every person liable to pay the
service tax shall within such time and in such manner and in such form as may
be prescribed, make an application for registration to the Superintendent of
Central Excise [section 69].
The procedure regarding the
registration has been prescribed under rule 4 of the Service Tax Rules, 1994.
Every person liable to pay
service tax shall make an application to the concerned Superintendent of
Central Excise in Form 'ST‑l' for registration within a period of 30 days
from the date on which the service tax is levied under section 66 of the
Finance Act, 1994 [Rule 4(l)]. However, where a person has commenced his
business for providing taxable services after the date when service tax was
levied, then he shall make an application for registration within a period of
30 days from the date of such commencement [proviso to rule 4(l)].
New
assessee delay in seeking registration
The question is where a person has
started business of providing taxable services, can he delay in seeking
registration till he rendered first taxable service. To this question,
department has clarified, on the representation made by the author to the
Commissioner, Central Excise and Customs, New Delhi, that "Every person
liable for paying service tax shall make an application of registration within
a period of 30 days from the date of commencement of business of providing a
taxable service in terms of provisions of rule 4 of Service Tax Rules,
1994". It is further clarified that "Penalty for non‑payment of
service tax, interest thereon or non‑filing of ST‑3 return is
leviable under sections 75 to 78 of the Finance Act, 1994" if registration
is not sought within the prescribed time. Therefore, even if an assessee who
has not provided taxable services but has started his business for providing
taxable services he is required to get himself registered under the service
tax.
Sub‑contractor
is required to take registration
No. In response to question no.
2.3 under 'Maintenance and Repair Service' of the 'Frequently asked questions
on Service Tax' issued in October, 2003 – If there is a total sub‑contract of the service, whether sub‑contractor
is supposed to take out a registration and discharge the tax liability?, the
Central Board of Excise and Customs has answered that "the sub‑contractor
need not take a registration under Service Tax. In all such cases, Service Tax
is to be paid by main service provider". Further, in response to question
no. 5.1 under the 'Sound Recording Services' of the 'Frequently asked questions
on Service Tax' issued in October, 2003 ‑ Whether lending/hiring of
Video/Sound Recording equipment come under service tax?, the Central Board of
Excise and Customs has answered that "the lending/hiring of Video/Sound
Recording equipment is in the nature of Sub‑contracts and because the Sub‑contractors
are not providing the services to the customers directly, they are not required
to pay service tax".
The above‑mentioned
exemption from seeking registration by subcontractor shall be available only if
sub‑contracting of work is under the same category of taxable service.
The Government in its Circular F. No. B‑11/3/98TRU, dated 7‑10‑1998
(appended as Annexure 11 in the Chapter ‑ 'Architect Service') has
clarified that if sub‑contracting of work is under different category of
taxable service, then service tax would be required to be paid. For example
where an architect sub‑contracts his work to a consulting engineer, the
service tax would be required to be paid by both the architect and the
consulting engineer on the services rendered by them. Similarly, a market
research agency would be required to pay service tax on services rendered by it
to an advertising agency, even if the advertising agency is also laible to pay
service tax on the amount billed to its client for advertising services (which,
inter alia, includes the amount paid by the advertising agency for such market
research services to the market research agency).
Registration in case of non‑resident
By the
Finance Act 2002, w.e.f. 16‑8‑2002 vide Notification No. 12/2002‑ST,
dated 1‑8‑2002, third Proviso of sub‑rule (1) of rule 4 has
been omitted. Prior to such amendment, as per the aforesaid proviso, a person
who is a non‑resident or is from outside India, does not have any office
in India was not necessarily required to be registered under the service tax,
if service tax on taxable services rendered by him is paid by such person or on
his behalf by any other person authorized by him under rule 6. This is a
consequential amendment, as now, w.e.f. 16‑8‑2002, in this case,
the person receiving the taxable service has been made liable to pay service
tax, therefore, he is required to take registration.
Single
registration for more services
Where the
same assessee is providing more than one taxable service, he can seek a single
registration for all such services provided by him, by making a single
application for registration, mentioning therein all the taxable services
provided by him, to the concerned Superintendent of Central Excise [sub‑rule
(4) of rule 41. The Board in its Circular No. ST‑51/13/2002 [F. No.
178/l/2002CXA], dated 7‑1‑2003 (appended as Annexure I in the
Chapter 'Classification of Services) has clarified that "However, one
service provider may provide more than one taxable service. In such cases, the
service provider need only take one registration, but it shall be endorsed for
all the taxable services".
Further
the Government in its Circular No. 72/2/2004‑ST [F. No. 137/9/ 2003(Pt.)‑CX4]
dated 2‑1‑2004 (appended as Annexure II) has clarified that where
an assessee provides more than one taxable service in respect of all the
taxable services only a single registration is sufficient for all the taxable
services provided by the service provider. It is also stated that while making
application for registration (on Form ST‑1) he should indicate all the
taxable services being provided by him. The CBEC in answer to question no. 2.3
of the 'Frequently asked questions on Service Tax' issued in October 2003 has
stated, "only one registration is required to be taken even if an
individual provides more than one service but from the same premises".
For the procedure of payment of service tax and filing of service tax return by an assessee who obtained single registration for more than one taxable service rendered by him from same premises, the reader may refer the Chapter ‑ 'Payment of Service Tax' and 'Service Tax Return' respectively.
When
services are provided from more than one premises/offices
(a) Centralized
billing system
Where the
assessee is providing the taxable services from more than one premises or
office and has centralized billing system at any one of such premises or
office, then he has the option to get registration for only one premises or
office from where such centralized billing is done [sub‑rule (2) of rule
41. The assessee is required to submit the list of all branches with their
address from where taxable service is rendered. To the question whether assessee
can have centralized billing system only for the taxable service, the answer is
affirmative [Rules 4(2)]. When the assessee gets the registration for only one
of the premises or office, where he has centralized billing system, he can
receive the payment at any place, in respect of bills issued in respect of
taxable services rendered to clients from any of such premises or offices.
(b) No Centralized billing system
Where the
assessee is providing the taxable services from more than one premises or office,
and does not have centralized billing system he shall make separate application
for registration in respect of each such premises or office to the concerned
Superintendent of Central Excise [sub‑rule (3) of rule 4].
(c) Centralized Accounting system
Where the assessee is providing the taxable services from more than one premises or office and has centralized accounting system at any one of such premises or office, he can make an application to the Commissioner of Central Excise for the registration of such premises or office from where such centralized accounting is done. The Commissioner of Central Excise may permit for such registration, if he is satisfied that such registration shall not be detrimental to the interest of the revenue [sub‑rule (3A) of rule 4].
Under the
Centralized Accounting System, bills are raised from various branches of the
assessee and are accounted for at one office of the assessee. In the Trade
Notice No. 76/2003, dated 6‑11‑2003, issued by Commissioner of
Customs & Central Excise, Hyderabad‑IV, in order to ensure that a
uniform practice is adopted to grant permission by Commissioner under Rule
4(3A), the following guidelines are issued:
Information/
documents to be submitted along with ST‑1 application:
(a) Proof of address of the premises office
sought to be registered
(b) PAN number of the assessee
(c) List of branches, offices or premises of
the assessee
(d) Brief note on accounting system adopted
by the assessee
(e) Branch‑wise series of invoices
maintained along with a sample copy thereof
(f) Previous years audited
balance sheet along with gross trial balance of different branches
(g) Details of records, accounts maintained
at different branches and Central Office
(h) Bank account numbers of
the Branches and Central Office through which the receipts are deposited/
transacted.
Therefore,
now, assessee has option to get registration only for one premises or office,
when he provides services from more than one premises or office, if he has
centralized billing system or centralized accounting system. However, if the
same assessee is operating business from one premises but under two different
firm names, he has to take two separate registration numbers, as each firm is
different entity.
Form and contents in application for registration
The
assessee is required to apply for registration on Form 'ST‑1' which is
quite simple. The registration under the service tax is made very simple as
compared to the registration under the Central Excise. The assessee is required
to give only little information like name and address and the category of
services rendered except in the case of registration of Stockbroker. The
Service Tax (Amendment) Rules, 2001, w.e.f. 16‑7‑2001 (vide
Notification No. 5/2001, dated 9 July, 2001) has inserted a new column No. 2A
in the Form 'ST‑V for furnishing PAN Number by the assessee. The
Government has clarified that if the Permanent Account Number (PAN) has not
been allotted or not applied for (under section 139A of the Income‑tax
Act, 1961), same may be indicated in the Form 'ST‑1'. When the assessee
is rendering more than one taxable service, all the services should be
mentioned at one place in the registration form.
Declaration
made in ST‑1 Form can be questioned by the Department
No. The
Government in its Circular No. 72/2/2004‑ST [F. No. 137/9/2003(Pt.)‑CX4],
dated 2‑1‑2004 (appended as Annexure II) has recognized the facts
that whenever service tax assessees approach the jurisdiction Superintendent of
Central Excise and other Central Excise Officers, they are being asked all
kinds of questions before their application is accepted for registration.
Therefore, it is clarified that "the declaration submitted at the time of
registration in the application for registration (ST‑1) shall be accepted
by the jurisdictional Superintendent of Central Excise". In the said
Circular, it has been clarified that "However, while granting registration
the rules 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".
Documents
accompanying Registration Form
The
Service Tax Rules, 1994 has not prescribed any particular document required to
be accompanied with the application for registration made in Form No. 1.
However, the Commissioner of Central Excise, Delhi‑I, in its Trade Notice
No. 36‑CE (Service Tax)/2002, dated 13‑8‑2002 has stated that
"the application (Form ST‑1) shall be accompanied by:
(a) Proof of address,
(b) Copy of PAN No., and
(c) Article of Association
& Memorandum of Association in the case of companies and in case of
partnership firm copy of the partnership deed."
The
Service Tax Rules, 1994 has not prescribed for any proof of address to be
submitted by the assessee along with the application for the registration, but,
the Superintendent of Central Excise may sometimes insist for a specific kind
of proof of address. Therefore, it is advisable that the assessee should
furnish the reliable evidence for the proof of address along with the
application for the registration. The department has clarified, on the
representation made by the author to the Commissioner, Central Excise and
Customs, New Delhi, "At the time of registration, any document showing the
address of the premises to be registered such as Telephone Bill, Ration Card,
Election Card, etc. is required to be furnished along with the application of
registration for due verification in terms of sub‑rule (5) of rule 4 of
Service Tax Rules, 1994 in accordance with Trade Notice No. 2/ST/99, dated 18‑2‑1999
of this Commissionerate".
Issue
of registration certificate
The
Superintendent of Central Excise is bound to grant a certificate of
registration in Form No. 'ST‑2' within 7 days from the date of the
receipt of the application. However, before the certificate of registration is
granted, such Officer is required to make the due verification of the
application form (but that does not permit him to question about the
correctness of the declaration made by the service provider, as discussed in
point 10 supra). But, in case registration certificate is not granted within
such period, it is deemed to be granted [subrule (5) of rule 4]. Therefore, now
it is mandatory and duty has been cast upon the Superintendent of Central
Excise to issue the certificate within a specified period. Further the
Government in its Circular No. 72/2/2004‑ST [F. No. 137/9/2003(Pt.)‑CX4]
dated 2‑1‑2004 (appended as Annexure II) has clarified that
"the registration must be given immediately but within seven days in any
case". It is also clarified that "the Certificate of Registration in
Form of ST‑2 should also indicate the details of all the taxable services
provided by the service provider".
D.G.F.T. Clarification
The
Director General of Foreign Trade (D.G.F.T.) in its Circular No. 10
(RE2002)/2002‑2007, dated 1‑8‑2002 (appended as Annexure 1)
has clarified that in case of applications under EPCG for the service sector by
service providers, the registration certificate from the Service Tax
Authorities would be insisted upon only if the service provided under the EPCG
Licence is taxable service under the Finance Act, 1994.
Where a
registered assessee transfers his business to another person, the transferee is
required to obtain a fresh certificate of registration [sub‑rule (6) of
rule 4]. Therefore, whenever an assessee transfers his business, it is
mandatory on the part of the transferee to seek a fresh registration under the
service tax.
Surrender
of registration certificate
Every
registered assessee, who ceases to provide the taxable service for which he is
registered, shall surrender his registration certificate immediately [sub‑rule
(7) of rule 4]. Therefore, whenever the assessee ceases to provide the taxable
services for which he is registered, he should surrender his registration
certificate as soon as possible to the concerned Superintendent of Central Excise.
Temporary suspension of business or getting no business will not require
surrendering of registration certificate. However, there is no penal provision
for not surrendering the registration certificate. When assessee is providing
more than one taxable services and has taken single registration for all such
services and ceases to provide any one or more of such taxable services, he
should intimate it to the concerned Superintendent of Central Excise and get
the same endorsed on the registration certificate.
Amendment
in the registration certificate
There is
no specific provision as on date for the amendment in the registration
certificate. However, prior to amendment in 1998, as per sub‑section (6)
of section 69, the registration certificate issued could have been amended by
the Central Excise Officer who issued the certificate, if he satisfied himself
that by reason of change in the name or place of the applicant or for any other
reason, the certificate of registration should be so amended. But now, the said
sub‑section has been omitted by the Finance (No. 2) Act, 1998, w.e.f. 16‑10‑1998,
therefore, now, no specific provision exists for the amendment in the
registration certificate.
However,
in practice, it has been seen that the Central Excise Officer (the Finance Act,
2001, w.e.f. 16‑7‑2001, has designated the Superintendent of
Central Excise) still amend the registration certificate on account of change
in the address of the assessee or change in the name of the assessee that does
not lead to the transfer of the business (like assessee who was rendering
services in his personal name later forms a proprietorship firm). No time has
been prescribed in which the assessee should intimate about the change, if any,
in respect of particulars of registration. There is no penal provision, if the
assessee fails to get the registration certificate amended. In the opinion of
the author, there is no need to intimate to the concerned Superintendent of
Central Excise if the assessee is a partnership firm and change has taken place
in the constitution of firm due to admission and or retirement of partner(s).
The Government, in this respect, has not prescribed any specific procedure.
Therefore, no uniform procedure is followed for amending the registration
certificate.
Departmental
clarification on the amendment in registration certificate
The
department has clarified, on the representation made by the author to the
Commissioner, Central Excise & Customs, New Delhi, "the registration
certificate issued to an assessee can be amended on various grounds/ reasons,
such as:
1. Change in the address of business
premises.
11. Change in the name and style of the firm.
The
assessee should intimate the nature of amendment required in the registration
certificate to the department, duly supported by the relevant documents
necessitating the amendments." Further clarified that "the amendment
in respect of change in the place of business of the assessee can be made in
the existing registration certificate. There is no need to seek a fresh
registration by the same assessee for the changed address. As can be seen from
rule 4(3) of Service Tax Rules, 1994, it is the premises also along with other
details, which is registered with department. Further, rule 4(l) provides for a
period of 30 days for seeking registration. Going by this principle new
premises needs to be registered under rule 4(3) and application should be made
within 30 days of such change in terms of rule 4(1)".
The
Commissioner of Central Excise, Delhi‑II, in its Trade Notice No.
20/2002, dated 23‑5‑2002 (appended as Annexure II in the Chapter ‑
'Payment of Service Tax') has also clarified that amendment in the registration
certificate for the above‑mentioned two reasons can be made but for any
other reason, a fresh registration may be applied in Form ST‑1 and
earlier registration certification may be submitted for cancellation.
Effect
of delay in registration
Chapter V
of the Finance Act, 1994 was amended by the Finance Act, 2001, w.e.f. 16‑7‑2001,
by inserting a new section 75A which provided penalty for failure to make an
application for registration. Any person, liable to pay service tax if fails to
make application for registration under section 69, shall pay penalty of Rs.
500 [section 75A]. The Government had clarified that such penalty for a fixed
amount is non‑discretionary. Prior to the aforesaid amendment, there was
no penal provision for not getting registration in the stipulated period of 30
days. Now, by the Finance (No. 2) Bill, 2004, the Government has proposed to
omit section 75A, thus there would not be any mandatory penalty for delay in
seeking the registration.
As
discussed above, the Service Tax (Amendment) Rules, 2001, w.e.f. 16‑7‑2001
(vide Notification No. 5/2001, dated 9 July, 2001) has inserted a new column
No. 2A in the Form 'ST‑V for furnishing PAN Number by the assessee. The
Government has clarified that if the Permanent Account Number (PAN) has not
been allotted or not applied for (under section 139A of the Income‑tax Act,
1961), same may be indicated in the Form 'ST‑1' vide Circular F. No. B
11/1/2001‑TRU, dated 9 July, 2001. However, following trade notices are
also issued for the amendments in the registration form
Service
tax code (STC) number/Service tax payer (STP) number
The
Central Government has decided to issue common identification number based on
the Permanent Account Number (PAN) allotted by the Income Tax Department, which
is known as Service tax code (STC), which has been named as Service tax payer
(STP) number in the Circular regarding E-filing of return. As per the decision
of the Government, PAN will be the only identify for cross‑referencing
with the other Departments. "The main objective of allocating a number is
to identify the concerned person where he is located and registered" ‑ reference ‑ 'Frequently asked
questions on Service Tax' issued in October 2003 by CBEC. The application is
required to be made in duplicate along with self‑certified copy of PAN.
Though, as per the Board Circular, it is necessary to quote STC on all
documents and Challan, but neither the space has been provided in Challan or
Return form to quote the STC nor the STC has been allotted to all the
assessees, though those assessees opting for e‑filing of return, they
compulsorily have to quote STC. For detailed discussion and the prescribed
format for application for STC Code Number refer to Chapter ‑'Introduction
of Service Tax Code Number'.
[Commissioner
of Central Excise, Madurai, Trade Notice No. 160/97‑S.T., dated 17‑12‑1997]
Attention
of the Trade is invited to Madurai Commissioner's Trade Notice No. 144/97
(18/Service Tax/97), dated 11‑11‑1997. Further to this Trade
Notice, the following amendments are incorporated in Form ST‑1, which is
the Application for Registration under section 69 of Chapter V of Finance Act,
1994 (32 of 1994), by addition of SI. Nos. 6(a) & 6(b) after SI. No. 6, as
under:
"6(a) Particulars of other Registration, if any,
with the local bodies/State Govt./Central Govt./any other Authority or
Organisation and the period of its validity.
6(b) Name & Address of the Registered/
Head/ Branch Offices, if any."
2. The revised form will apply to all
services.
3. It is brought to the
notice of the trade that the information required under SI. No. 7 of Form ST‑1
is for the Stock Brokers and not for other services.
[CCE, New
Delhi, Trade Notice No. 42‑CE (Service Tax)/97, dated 19‑6‑1997]
Further to
Trade Notice No. 39/97, dated 11‑6‑1997, the following amendments
are incorporated in column 6 of Form ST‑1, which is the application form
for registration under section 69 of the Finance Act, 1994 (32 of 1994), by
addition of columns 6(a) and 6(b).
6(a) Name of the signatory/ signatories
authorised to sign on behalf of the Customs House Agent.
6(b) Customs House Agent licence number and the
period of its validity.
These
provisions will apply to Custom House Agent only.
2. It is brought to the
notice of the trade that information required by para 7 of Form ST‑1 are
specific to the stock‑brokers and are not applicable to providers of
other services.
3. The form of application
for registration under section 69 of Finance Act, 1994 has been issued by the
Central Board of Excise and Customs, who are being requested to make the above
amendment for the sake of uniformity of practice, as it would be applicable to
Custom House Agents in other Commissionerates also. However, till such time
this is done, the ST‑1 as amended would be applicable to the Custom House
Agents in the jurisdiction of this Commissionerate.
Registration with authorities for
application under EPCG licence for service providers
Attention
is invited to Public Notice No. 12, dated 2‑5‑2002 wherein for
applications under the EPCG Scheme by service providers, one of the documents
prescribed was the Registration certificate with the Service Tax authorities.
Section 69
of Chapter V of the Finance Act, 1994 (as. amended by the Finance Act, 1997,
1998, 1999, 2000 and 2001) pertaining to registration goes as under:
"Every
person liable to pay the service tax under this chapter or the rules made
thereunder shall, within such time in such manner and in such form as may be
prescribed, make an application for registration to the Superintendent of
Central Excise."
This
indicates that only those service providers who are liable to pay the service
tax can apply for registration with the service tax authorities.
However
this list is subject to amendments from time to time. In tune with the
provisions of Chapter V of the Finance Act pertaining to "Service
Tax" and the proviso under PN 12, dated 2‑5‑2002, it is hereby
clarified that in case of applications under EPCG for the service sector by
service providers, the registration certificate from the Service Tax
Authorities would be insisted upon only if the service provided under the EPCG
Licence is "taxable" as per Part (72) of section 65 of Chapter V of
the Finance Act, 1994 (as amended from time to time).
This
issues with the approval of the Director General of Foreign Trade.
Facility for single registration and
filing single return for Assessees providing more than one services
During the
Open Houses and Seminars conducted all over India, lot of queries have been
raised as to whether only single registrations is required for a service
provider providing more than one taxable service and also whether a single
return is acceptable in respect of more than one taxable service being provided
by the service tax provider. Apprehensions have also been raised that whenever
the service tax assessees approach the jurisdictional Superintendent of Central
Excise and other Central Excise officers, they are being asked all kinds of
questions before their application is accepted for registration. These issues
have been agitating the minds of service providers and, therefore, this is
being clarified in respect of all the taxable services that only a single
registration for all the taxable services provided by the service provider and
also a single return where an assessee provides more than one taxable service
is sufficient.
Similarly,
the declaration submitted at the time of registration in the application for
registration (ST‑1) shall be accepted by the jurisdictional
Superintendent of Central Excise and the registration must be given immediately
but within seven days in any case.
The
following points are, therefore, further clarified:
1. Whether a service
provider providing more than one taxable service is required to take one
registration or separate registration?
Clarification:
Attention is invited to rule 4(4) of the Service Tax Rules, which provides
"where an assessee is providing more than one taxable service, he may make
a single application, mentioning therein all the taxable services provided by
him, to the concerned Superintendent of Central Excise". Thus in terms of
this rule such service provider would be required to take a single
registration. However while making such application for registration he should
indicate all the taxable services being provided by him Certificate of
Registration in Form of ST‑2 should also indicate the details of all the
taxable services provided by the service provider.
2. Whether a single return
is sufficient when an assessee provides more than one Service or separate
return is to be filed for each taxable service?
Clarification:
Attention is invited to Q.4.7 of the 'Frequently asked questions on Service
Tax' issued by CBEC in October 2003, wherein it has been clarified " a
single return would suffice. However the details in each of the columns of the
Forms ST‑3 has to be furnished separately for each of the taxable service
rendered by the assessees".
3. What action should be taken by the
concerned officer receiving the application for registration?
Clarification:
The application received for registration in Form ST‑1 will have to be
processed as per the rule 4(5) of the Service Tax Rules. 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.
4. The field formations may suitably be
informed.
5. Trade Notice may be issued for the
information of the trade.