Dear all, Please help me on this.
Is a branch liable to pay service tax on the income shared,... though the bill was raised by some other branch of the same organisation?
Sudhir Pai (CA Inter / CS Inter / B Com) (145 Points)
14 August 2010Dear all, Please help me on this.
Is a branch liable to pay service tax on the income shared,... though the bill was raised by some other branch of the same organisation?
Manoj BG
(Tax Professional and in Service)
(1795 Points)
Replied 15 August 2010
HI DEAR,
SERVICE TAX LAW IS CENTRALISED LAW AND HENCE REGISTRATION NEEDS TO BE TAKEN FOR THE ORGONISATION AS WHOLE AND NO NEED FOR SEPERATE REGISTRATION. THUS, ORGONISATION AS A WHOLE NEEDS TO PAY SERVICE TAX AND NOT BY THE INDIVIDUAL BRANCH EVEN IF THERE IS INCOME SHARING BETWEEN HEAD OFFICE AND BRANCH.
REGARDS,
MANOJ
Dipsang Vadhel
(A.O.)
(24 Points)
Replied 17 August 2010
As per service Tax Rules, an assessee can take centralized registration for all premises from where services are provided. Alternatively, all premises can be seperately registered.
Even if all premises are seperately registered.If H.O or Branch office , as the case may be,has paid s.T. on bill.,sharing of fees between H.O. and Branch office do not attract any tax.
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