Please Help: Service tax & excise duty
Posted Date : 06-Sep-2012 , 07:40:53 pm | Posted By: Mukund M Honkan
Category :
Service Tax | Answers :
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Comments :
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1. If a company is having different locations providing taxable services under Service tax whether Service tax registration is separate for each state?
2. Can we claim Service tax input against excise output & vice versa ?
3. Can we claim sevice tax input at one state against excise output at another state
Pl. let us know with supporting sections
regards Mukund M Honkan |
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| Posted By : Hemant Kumar |
11-Sep-2012, 05:58:29 |
| You can opt for a centalised registration of all the premises if you have centalised accounting and bill processing system. Every premises registered under this (as reflected in ST-2) is eligible for credit. you can take credit from all the premises for squaring off your St liabilities. However if you opt separate registration then credit on the inputs will restricted to the output of that premises. In practicle terms ST officer will deny the credit of one location with another location (if registered separately).
For the purpose of Service Tax Registration of premises, ST Rule 4 for registration says:-
(1) Every person liable for paying the service tax shall make an application to the concerned Superintendent of Central Excise in Form ST-1 for registration within a period of thirty days from the date on which the service tax under section 66 of the Finance Act, 1994 (32 of 1994) is levied:
Provided that where a person commences the business of providing a taxable service after such service has been levied, he shall make an application for registration within a period of thirty days from the date of such commencement:
Provided further that a person liable for paying the service tax in the case of taxable services referred to in sub-section (4) or sub-section (5) of section 66 of the Finance Act, 1994 (32 of 1994) may make an application for registration on or before the 31st day of December, 1998
Provided also that a person liable for paying the service tax in the case of taxable services referred to in sub-clause (zzp) of clause (105) of section 65 of the Act may make an application for registration on or before the 31st day of March, 2005.
(2) Where a person, liable for paying service tax on a taxable service,
a. provides such service from more than one premises or offices; or
b. receives such service in more than one premises or offices; or,
c. is having more than one premises or offices, which are engaged in relation to such service in any other manner, making such person liable for paying service tax,
and has centralised billing system or centralised accounting system in respect of such service, and such centralised billing or centralised accounting systems are located in one or more premises, he may, at his option, register such premises or offices from where centralised billing or centralised accounting systems are located. (vide Notification No. 29/2006-ST dated 2.11.2006)
(3) The registration under sub-rule (2), shall be granted by the Commissioner of Central Excise in whose jurisdiction the premises or offices, from where centralised billing or accounting is done, are located:
Provided that nothing contained in this sub-rule shall have any effect on the registration granted to the premises or offices having such centralised billing or centralised accounting systems, prior to the 2nd day of November, 2006.(vide Notification No. 29/2006-ST dated 2.11.2006)
(3A) 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.
(4) 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.
(5) 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.
(5A) Where there is a change in any information or details furnished by an assessee in Form ST-1 at the time of obtaining registration or he intends to furnish any additional information or detail, such change or information or details shall be intimated, in writing, by the assessee, to the jurisdictional Assistant Commissioner or Deputy Commissioner of Central Excise, as the case may be, within a period of thirty days of such change.
(6) Where a registered assessee transfers his business to another person, the transferee shall obtain a fresh certificate of registration.
(7) Every registered assessee, who ceases to provide the taxable service for which he is registered, shall surrender his registration certificate immediately to the Superintendent of Central Excise.
(8) On receipt of the certificate under sub-rule (7), the Superintendent of Central Excise shall ensure that the assessee has paid all monies due to the Central Government under the provisions of the Act, and the rules and the notifications issued thereunder, and thereupon cancel the registration certificate
Since if the separate registration is applied for the division then Cenvat Credit will restricted to particular division as mentioned in the rule 7A of Cenvat credit
Rule 7A Distribution of credit on inputs by the office or any other premises of output service provider.- (1) A provider of output service shall be allowed to take credit on inputs and capital goods received, on the basis of an invoice or a bill or a challan issued by an office or premises of the said provider of output service, which receives invoices, issued in terms of the provisions of the Central Excise Rules, 2002, towards the purchase of inputs and capital goods.
(2) The provisions of these rules or any other rules made under the Central Excise Act, 1944, as made applicable to a first stage dealer or a second stage dealer, shall mutatis mutandis apply to such office or premises of the provider of output service.
However an option for utilising credit can be applied in totality by registering the head office as a service tax distributor if possible:-
Rule 7:- Manner of distribution of credit by input service distributor. - The input service distributor may distribute the CENVAT credit in respect of the service tax paid on the input service to its manufacturing units or units providing output service, subject to the following condition, namely:-
(a) the credit distributed against a document referred to in rule 9 does not exceed the amount of service tax paid thereon; or
(b) credit of service tax attributable to service use in a unit exclusively engaged in manufacture of exempted goods or providing of exempted services shall not be distributed.
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| Posted By : Mayur Arora |
07-Sep-2012, 09:53:48 |
| If company has centralised billing system then there is no need to apply for seperate registration otherwise separate registration is mandatory. Answer of next 2 questions is YES. |
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| Posted By : CA. Ajay Agrawal |
06-Sep-2012, 07:52:24 |
| 1) if the company is following the centralised billing system then mere registration of the Unit from where the bills are generated is sufficient. Otherwise ST reg for each unit is required.
2) Yes u can very well claim the same.
3) if u have single registration then u can claim the same.
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