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 ?

[KASTURI SETHI]

Mr.Subroto Dasgupta Ji,

Query is incomplete. Pl. post more details or email SCN.

[Ganeshan Kalyani]

The question is not clear. Request to brief your query clearly.

[YAGAY and SUN]

Dear Subroto,

As we understood you correctly that you have centralized accounting facility in your unit but have not received the Centralized Registration from the Service Tax Department and also not provided any intimation regarding additional places of businesses but deposited the Service Tax so collected from all your branches. In our opinion since you have paid the entire service tax which was collected by you therefore, Department in worst scenario can penalize you for not obtaining the Centralized Registration Certificate. However, you can always plead for a lenient view since you have not evaded the service tax collected by you, since it is a procedural lapse at your end.

If required, we can help you out in this matter by submitting a suitable and appropriate reply to the department against impugned SCN etc.

Regards,

YAGAY and SUN

(Management, Business & Indirect Tax Consultants)

AI Summary

Centralized registration requirement: failure may attract penalty though full tax payment may mitigate enforcement by revenue authorities.
A centralised-accounting taxpayer with multiple branches deposited and reported service tax collected but lacked centralized registration; the core question is whether that omission amounts to non-payment or evasion. Advisers state the omission is a procedural lapse: authorities can issue a show cause notice and seek penalties for failure to obtain centralized registration, yet the taxpayer can seek leniency because the tax was paid and returns filed, and should respond to the notice and regularise registration.