Q & A:Service Tax Registration
P.D.RUNGTA
Query:Service Tax Registration
Dear Sir,
I'll be highly obliged if you suggest me a solution to my below-mentioned query:
I have a Private Limited Company which has two manufacturing units located in two zones in a city, Excise Returns are separately filed for each of the units, Excise Registers and Bills are separately maintained, VAT Tax Invoices are also raised separately for each unit. The Company is paying Freight on which it is liable to Service Tax.
Now whether the company can obtain centralised service tax registration for all the premises or it will have to apply for registration of each unit separately.
Thanks & Regards
Ishan Bedi
If you have excess credits in one unit and tax liability in the other, it makes sense to opt for centralized registration to get the benefit of set off of excess credit at one unit with tax liability of another. However, for seeking centralized registration at a unit, the said unit needs to have either centralized accounting or centralized billing.
Best Regards
Shivani Shah & Associates
CA. Shivani Shah
Web: www.cassa.co.in
Ph: +91 98304 02305, +91 33 2290 6390 (Kol)
+91 98642 38429, +91 374 234 0474 (Assam)
Madhu sharma
Pramod Dayal Rungta
M.Com.,LL.B.,AICWA.,DISA(ICAI).,FCA
Member EIRC ICAI (2010-12)
P.D.Rungta & Co.
Chartered Accountants
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P.D.RUNGTA
Query:Service Tax Registration
Dear Sir,
I'll be highly obliged if you suggest me a solution to my below-mentioned query:
I have a Private Limited Company which has two manufacturing units located in two zones in a city, Excise Returns are separately filed for each of the units, Excise Registers and Bills are separately maintained, VAT Tax Invoices are also raised separately for each unit. The Company is paying Freight on which it is liable to Service Tax.
Now whether the company can obtain centralised service tax registration for all the premises or it will have to apply for registration of each unit separately.
Thanks & Regards
Ishan Bedi
Reply:1
It is the subject matter of financial feasibility also. Once CENVAT Account is common and credit in balance could be utilized to pay Excise duty as well as Service Tax, now financial feasibility is one of the issue, facility provided to large tax payer is the separate issue, all the corners must be analysed accordingly.
CA Ravi Holani
Mb No:-9425109183,9425115728
0751-2365815
20, Pandit vihar Colony
Gola Ka Mandir
Gwalior
Query:Service Tax Registration
-an individual having different business titles
Deal All
I just read in a book that an individual providing different taxable services under different firm(sole proprietor)name from a single premises have to take multiple registration.I am completely confused as to on what basis to decide when to take single registration number and when to take multiple. Please Suggest.
Refer Order No.30 - Rule 10 of the Code of Civil Procedure, 1908. Also refer LAWN HOSIERY MILLS AND OTHERS Vs. DURGA FASHIONS (2002) 111 COMP. CASE 568 (MAD); S.K. REAL ESTATES AND ANOTHER Vs. AHMED MEERAN (2002) 111 COMP. CASE 400 (MAD). An individual - his natural name and his business titles one and same thing. Only single registration will be made.
CA Ravi Holani
Mb No:-9425109183,9425115728
0751-2365815
20, Pandit vihar Colony
Gola Ka Mandir
Gwalior
Query:Service Tax Registration
/ Liability to pay service tax
FACTS OF THE CASE :
1. A new proprietorship concern started in Dec 2011 dealing in business auxiliary services.
2. For FY 2011-12 its gross receipts will be below 9 lakh but will cross
the limit of 9 lakh in 2012-13 than it have to compulsorily have to
take service tax no.
3. But as it is getting difficulty in opening a current account with bank without ant registration under service tax or vat, it want to register itself under service tax.
NOW MY QUERY IS :
1. if Proprietorship concern gets itself registered under service tax and do not charge service tax from customers
this year 2011-12 and next year 2012-13 till the limit of Rs 10 Lakh is reached , whether any liabilty of service tax will be there on such service provider ?
2. can it claim exemption provided to a service provider having aggregate of services below 10 lakh in a year in the returns to be filed for 2011-12 and 2012-13 under notification No. 8/2008 Dt.1.3.2008 ?
Plz advise
Thanks
S K Goel
Mr. Goel, I agree and endorse the approach taken by you which is perfectly in order. Take registration.
Just continue NIL returns till you cross threshold exemption.
But why is the Bank insisting on a wrong procedure ? Why not write to the Finance Minister, under whose charge the Banks & Service tax Department falls to instruct Banks to discontinue this unwanted practice ?
Kind regards,
Rebecca Andrews
Reply:2
Dears,
As per KYC norms, banks are asking for proof of existence of entity(prop. Concern or firm or company). As there is no relation to compulsarily register prop concern. The problem arises. When applying service tax registration without reaching limit, dept don't register. They safely gets undertaking to charge and serv tax from first bill or from the date of registration.
Registering under Vat also cost us more.hence the ideal way to prove existence of sole prop concern is either to register under SSI or register a deed of proprietorship( a sworning in statement) to be registered with jurisdictional registrar (of deed)
Regards
Nss <tax...@yahoo.com>
Sent from BSNL with my BlackBerry® smartphone
Reply:3
Taking or not taking the benefit of notification for exemption till Rs 9 lakhs turnover is optional one, the Department could not insist to not take any benefit of exemption Notification No. 6/2005 S.T. as amended. Unfortunately, no one wants to understand Order No. 30 of the Code of Civil Procedure, 1908, than we could not understand what would be the reply.CA Ravi Holani
Mb No:-9425109183,9425115728
0751-2365815
20, Pandit vihar Colony
Gola Ka Mandir
Gwalior
