Service tax payment

This query is : Resolved

Rama Mahawar (Querist)
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02 December 2010 Hi,

We are an It company,

we received an advance in delhi but transfer the advance to HO (in books only, no monetary transfer). Then we paid the service tax from HO.

Now we want to transfer the advance again to Delhi as all invoice shall be raised from Delhi. Will that creat problem in service tax?

The service tax number is diffrent in Delhi and HO. Can we do only rest payment of service tax from delhi???

Please reply. it's urgent

Thanks in advance.

Rama.

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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02 December 2010 You want to pay service tax partially from delhi and balance from HQ for the same invoice. Although as per the ACT service tax is being fully paid , but it may be problematic. However , there is no problem in paying the service tax from HQ and Delhi.

Rama Mahawar

Rama Mahawar (Querist)
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03 December 2010 Hi,

Thanks for your prompt response.

But thing is not clear to me.

As per ACT will that create any problem at the time of assessment. The amount of service tax is in lakhs.

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CA.Hanumantha Reddy

CA.Hanumantha Reddy (Expert)
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03 December 2010 Whether the transaction is lible to ST or not (for what purpose your are receiveing money, etc). If the same is liable for ST then you do not have any option in this regard.when there is a separate registration, pls ensure that you are liable for your transactions. Therefore pls pay service tax on the amount received from HO.

Rama Mahawar

Rama Mahawar (Querist)
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07 December 2010 Hi,

Transaction is liable for service tax and we have paid service tax on advance also.

as said earlier we have service tax registration number diffrent in bth unit. We received advance in delhi but paid service tax from kolkata. After that we transferred the advance to kolkata in books only. No financial transfer done.

Now we want to transfer the advance in delhi again as invoice raised from there.

when we receive the outstanding amount from customer at delhi. can we pay the rest service tx from delhi?

Will payment done in kol on behalf of delhi will be acceptable in case registration number is diffrent??

Please reply.

Suresh Ramaswamy

Suresh Ramaswamy (Expert)
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08 December 2010 Now a days Service Tax Registration number are PAN based. However, it is apparent you have applied for separate single premises registration for your HO and Delhi Branch separately - hence the anomaly. Your invoices should carry your ST registration number. Please realize that if your invoices do not carry both the numbers, the persons claiming Input Credit on your bills will face problems. If your invoices carry both the numbers, it is immaterial as to where you pay the tax as long as the same is remitted to the credit of the government in time, otherwise, it would be advisable to remit the tax at the centre whose number is on the invoice.

One further suggestion, you may go for revision of your ST-2 by converting your registration to centralized registration in which case the same registration number would apply and all your assessments, returns, etc. would be centralized at your HO.