Service tax registration in the name of Properitor

[Asked by Guest]

Dear Sir, Please explain whether service tax registration number is issued in the name of Proprietory business name ( not in the name of proprietor). If registration is issued in the name of proprietor, does it make any difference for service receiver to claim tax credit for service tax charged if bill is in the name of business not in the name of proprietor? ( Service tax no allotted in the name of proprietor mentioned on the bill given.) Kindly guide.Please mentioned us any rule regarding such. Thanks & regards.

[Rajagopalan Ranganathan]

Sir,

A sole proprietorship, also known as the sole trader or simply a proprietorship, is a type of business entity that is owned and run by one natural person and in which there is no legal distinction between the owner and the business. The owner is in direct control of all elements and is legally accountable for the finances of such business and this may include debts, loans, loss etc. Therefore in respect of proprietary firms, registration certificate will be issued in the name of proprietor and is based on his PAN Number. Since there is no distinction between the proprietor and proprietary firm tax credit will be allowed even if the bill is in the name of firm. this is my opinion.

[CSSANJAY MALHOTRA]

Dear Mr. Sandesh,

Business Registration name depends upon owners choice, whether to take Service Tax No in the name of his business for e.g. M/s ABC sons / Enterpises or in SELF.

Endorsing the views of Sh. Rajagopalan that Service Tax No will remain same irrespective of Business Name / Self as the Service Tax No. is based on PAN No.

Further the department sometime raises concern over the service tax credit if the invoices are in the name of Owners, and the service tax registration is the name of Business name, but undoubtedly the CENVAT is available.

[MUKUND THAKKAR]

Dear Sandesh,

I am agree with view of both gentlemen,

As per my view officer is always reading rules & act. they never think broadly.to avoid the difficulty. please check the volume of credit. than act accordingly.

[Mahir S]

Sir,

Taking service tax registration in the name of proprietary firm is advisable, as other registration such as VAT/CST/ INCOME TAX etc. shall also be required to be taken simultaneously.

[KASTURI SETHI]

Replies of all experts have culminated into all-round solution. These replies have enriched my knowledge on this issue.

AI Summary

Service tax registration in sole proprietorship confirms input credit entitlement despite invoices issued in the trade name.
Service tax registration for a sole proprietorship is issued in the proprietor's name based on the proprietor's PAN; because there is no legal distinction between proprietor and business, input credit or CENVAT is available even when invoices are in the trade name. Departmental scrutiny may occur where registration and invoice names differ, so obtaining registration in the trade name is often recommended to align statutory registrations and minimise procedural difficulties.