Regarding service tax registration

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 February 2012 If the organization has registered under excise and it the take credit on excise duty and service tax paid on input material/services in Cenvat Register and utilize the same for excise duty payment

Also this organization has not provide any service, so that service tax registration has require? for availing the service tax input facilities in cenvat.

Kindly guide

PUNEET GOYAL

PUNEET GOYAL (Expert)
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18 February 2012 As per CENVAT credit rules a manufacturer can take and utilize the service tax paid on input services without getting registration under service tax act. However you should keep in mind that if you are availing services of goods transport agency in that case you are required to pay service tax to the revenue instead of GTA. Hence in this case you have to take registration under service tax act.

Querist : Anonymous

Querist : Anonymous (Querist)

20 February 2012
Thanks you sir, for the reply and it is the most valuable for me

Our excise range superintendent has intimated to us for registering under service tax G.T.A., but we have availing the mentioned below services and those are the exempted from Service Tax GTA so that we have required the registration?

1) Inward Transportation - In the relation to transportation of Fruit & Vegetable by road and this the service exempted as per notification no. 33/2004-ST dt 3.12.2004

2) Outward Transportation –
 In the relation to export consignment – we availing services of transportation from export depot to exporting Port from our clearing & forwarding Agent – this service exempted as per notification no. 18/2009-ST dt 7.07.2009

 In the relation to Domestic consignment – our customer himself arranges the transportation & pays the transport charges directly to the transporter.

We have replied to department about the same, but superintendent not satisfied hence please advise to me registration is necessary or not?

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PUNEET GOYAL

PUNEET GOYAL (Expert)
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22 February 2012 Provision related to registration has been given in section 69 and while rule 4 of Service Tax Rules, 1994 provides for time limit for making application for registration.
Section 69 requires two types of person to get registered under
Finance Act, 1994 i.e.
1. Person liable to pay service tax
2. Other specified person or class of person
The meaning of “Person liable to pay services tax” has been extended by including certain specified persons (Especially by casting liability to pay service tax by specified service receiver) by Rule 2 (d) of Service Tax Rules, 1994.
For the purpose of second category above, Govt. has made Service Tax (Registration of Special Category of Persons) Rules, 2005. As per these rules two types of person requires to be registered under this Act:
1. Input Credit Distributors
2. Any provider of taxable service whose aggregate value of taxable service in a financial year exceeds nine lakh rupees
Thus it is clear from the above provision that one shall make application for registration only if he or she is falls under any of the given category:
1. Person liable to pay service tax as per provision of Rule 2 (d) of Service Tax Rules, 1994.
2. Input Credit Distributors.
3. Any provider of taxable service whose aggregate value of taxable service
in a financial year exceeds nine lakh rupees.
Now question is that whether a person shall be considered as person liable to pay service tax if he or she has been exempted from payment of whole of the service tax payable under section 66 and 66A by any exemption notification.
Answer for the above question is that assesse is not required to be registered under Finance Act, 1944 because even though a person is providing taxable services he or she is not required to pay service tax if they are small service provider i.e. payment received during a financial year is up to ` 10 lac and in that case application for registration is required to be made within 30 days from the date payment received exceeds ` 9 lac.
And said limit of ` 10 lac or 9 lac does not includes “gross amount which are exempt from the whole of service tax leviable thereon under section 66 of the Act under any notification”.
Similarly in the case of GTA or other specified receiver of services who has been made liable to pay service tax by above provision would not be considered as person liable to pay service tax in respect of “gross amount which are exempt from the whole of service tax leviable thereon under section 66 of the Act under any notification”. Accordingly if a specified person is liable to pay service tax is receiving only services in respect of “gross amount which are exempt from the whole of service tax leviable thereon under section 66 of the Act under any notification” then they would not be required to be registered under the service tax provisions.
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Querist : Anonymous

Querist : Anonymous (Querist)

22 February 2012 Thanks a lot