13 January 2012
one of my client is manufacturing of Tapes, registered under the Excise Act. Company purchased goods from the out of maharashtra by way of Road Transport and paying the transport agency. is it liable for service tax collection on behalf of Service provider i.e transport agency. if company is liable then when company should register themself under the Service rule
14 January 2012
As per rule 2(1)(d)(v) of Service Tax Rules, 1994 you client has been made liable to pay service tax. Accordingly, as per provision of rule 4 (1) of STR, 1994, your client is required to make application for registration within 30 days from the date of commencement of business. For your reference relevant provision of the Act are reproduced below: Provision related with registration under Finance Act 1994 are laid down in section 69 read with rule 4 of Service Tax Rules, 1994 & Service Tax (Registration of Special Category of Persons) Rules, 2005. As per section 69 (1) EVERY PERSON LIABLE TO PAY THE SERVICE TAX shall make an application for registration within such time, in such manner or form as prescribed in rule 4 of STR 1994. Section 69 (2) provides that specified person or class of persons shall make an application for registration within such time, in such manner or form as prescribed in Service Tax (Registration of Special Category of Persons) Rules, 2005.
PERSON LIABLE TO PAY THE SERVICE TAX As per rule 2(1) (d) of STR, 1994, person liable for paying service tax, inter alia, means (v) In relation to taxable service provided by a goods transport agency, where the consignor or consignee of goods is, inter alia,- (f) any dealer of excisable goods, who is registered under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder. TIME LIMIT FOR MAKING APPLICATION FOR REGISTRATION: As per rule 4 (1) STR, 1994, 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:
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