Centralised service tax & excise registration

[Narendra Soni]

Dear Experts,

1.Can two units having separate central excise registration can obtain centralised service tax registration.PAN of both the unit is same.

If yes,How can be filed cenvat detail in ER.1 of each unit.

2.Can two units located in same Division & commissionerate but in different Range obtain centralised excise registration.

Kindly suggest.

[KASTURI SETHI]

For Centralised Registration first condition is Centralised Accounting/Billing System as per Rule 4(2) of Service Tax Rules,1994. However, it is assessee's option whether to get Centralised Registration or separate for each. Reply to your First query is Yes. After getting Centralised registration, you will not find problem while filing ST-3 return, the ACES system will generate columns accordingly. That is very simple.

[Suryanarayana Sathineni]

Dear Friend,

Centralized Registration for Service Tax to be taken on office address where centralized financial accounting and Bill processing happening together with ISD ( Input service Distributor).

After completion of the above, the central office of the units can distribute the common credit of input services to both the units based on the formulae prescribed under Rule 7 of CCR,2004 and the unit specific credit to the respective units. Then the units will take credit of input service Tax distributed based on the ISD invoices and incorporate the same in the ER1 returns of the respective units.

Further, with the recent amendments in the Budget, if the units are located in the same area and they can register as a single unit subject to the specified criteria. If you make use of this ,pl. refer the relevant provisions of the recent changes.

Best Regards

Suryanarayana

Comming to

[Ganeshan Kalyani]

Sir in my view separate service tax registration number is required for two separate unit. Additionally to avail service tax credits on the services used at Head Office, a centralised service tax number should be applied for.

Second question, in my view to have better accounting, better costing, better compliance, better control, better assessment separate excise number is preferable. Thanks.

[KASTURI SETHI]

Sh.Narendra Soni Ji,

Sh.Ganeshan Kalyani, Sir is a specialist in accounting matters, in addition to other areas. So I agree with second para of his reply dated 9.5.2016.

[Ganeshan Kalyani]

Sri Kasturi Sir thanks for validating second para.

[Suryanarayana Sathineni]

Dear Kalyani Ji and Kasturi Ji,

As stated by me taking centralized registration will facilitate for distribution of ST on unit specific and common credit but also to avoid filing of separate Returns and maintaining of seperate accounts.

I still feel, taking Centralized Registration would be better if the company is having centralized finance processing system at their HO.

Best Regards

Suryanarayana

[KASTURI SETHI]

Sh.Surya Narayana Ji,

I agree with your views, Sir.

AI Summary

Centralised service tax registration enables consolidation of accounting and ISD credit distribution while preserving separate unit filings. Centralised service tax registration is available where a common centralised accounting and billing system exists and is optional for assessees. The central office may act as an Input Service Distributor to allocate common input service credits to individual units using the prescribed allocation formula, and the returns and filing systems accommodate centralised reporting. For excise, while consolidated registration may be possible under specified criteria, separate registrations are often preferred for clearer accounting, costing and compliance, and unit returns must reflect ISD-distributed credits.