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Service tax Centralized Registration

Posted @ November 28, 2012, 4:21 am under (Service Tax Updates)

Service tax Centralized Registration

Where an assessee is providing a taxable service from more than one premises or offices and has a centralized billing systems or centralized accounting systems in respect of such service, and such centralized billing systems or centralized accounting systems are located in one or more premises or offices he may, at his option, register such premises or office where such centralized billing systems or centralized accounting systems are located.

After the Centralized Registration is granted, the assessee shall surrender their single registration in respect of each branch and intimate to the jurisdictional Divisional Assistant Commissioner/Deputy Commissioner within a period of two months.

1. Person eligible for Centralized Registration:
As per the service tax Rules a person with following conditions may at its option apply for centralized registration for the premises or offices where the centralized billing or accounting system located.
·         liable to pay service tax,
·         provide or receive services more than one premises or offices and
·         has centralized billing system or centralized accounting system,

2. Records & Billing System under Centralised Registration:
All the records related to the service tax have to be maintained centrally in the premises or office which is centrally registered. The Centralized accounting and billing signify that invoices of two or more branches to be raised from one address and accounting also to be done at same address.

As per Service Tax Rule 4(2)(iii) of the Service Tax Rules 1944 (as amended), the Centralized Registration can be requested only in the cases where there is system of Centralized Billing or Centralized Accounting system. The assessee shall provide a write-up stating as to how they are satisfying the condition of Centralized Billing or Centralized Accounting.

3. Advantages of Centralized Service tax Registration:

The scheme of Service tax centralized registration has following benefits to the service provider having business more than one premises and also having centralized system of Accounting & billing:
·         It will help to reduce the burden of maintenance of billing, accounting records and details at different places.
·      After Centralized registration, the service tax payment and service tax return can be filed centrally from the premises/ office granted centralized Registration by the Department.
·         Hiring of separate local consultant for compliance not required and result in cost saving.
4. Limitations of centralized registration:
·         The centralized registration process is complex and time consuming, the registration can take anywhere between 2 to 4 months. Requirement of documentation is also quite extensive.
·         Accounting and billing from one place only and Billing address should be the Centralized Registered office.
·         At times Maintenance of branch records at one place may be difficult.

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