WITH SINGE PREMISE SERVICE TAX REGISTRATION , SERVICE TAX OF ALL BRANCH UNITS ARE DULY DEPOSITED - AGAINST S TAX LAW ?

[SUBROTO DASGUPTA]

A CENTRALISED UNIT WITH CENTRALISED ACCOUNTING HAVING 7 BRANCHES IN OTHER CITIES HAS COLLECTED AND DEPOSITED SERVICE TAX WITH REFLECTION IN ST-3 RETURNS, IS NOW FACING WITH SHOW CAUSE FOR NOT TAKING CENTRALISED REGISTRATION OF NON-PAYMENT OF SERVICE TAX. HOW FAR THIS BE JUSTIFIED ?

AI Summary

Centralized service tax unit faces notice for missing registration; penalties possible despite tax payment. Leniency considered. A centralized unit with branches in various cities collected and deposited service tax, reflected in ST-3 returns, but faces a show cause notice for not obtaining centralized registration. The issue is whether this non-compliance with service tax law is justified. Responses indicate that the query lacks clarity and suggest providing more details. One response explains that while the service tax was paid, the absence of centralized registration could lead to penalties. However, since the tax was not evaded, a lenient view might be possible. Assistance is offered for responding to the notice.