Centralized Registration

[Ashok Chopra]

Respected Forum,

I am manufacturer-exporter of different products and having our four units at different locations. Name of the company of all locations is same and we prepare single balance sheet of all units. Our service tax liability is only under Reverse Charge Mechanism. Also i provide service of 'Renting of Immovable Property' in one unit.

I have Centralized Registration of Service Tax.

My query:-

Is Centralized registration in our case is correct procedure or i should obtain separate registration for each unit?

Thanks and regard

[KASTURI SETHI]

Sh.Chopra Ji,

Centralized Registration is the best option. It saves your time and it is also convenient for as assessee.

[Ganeshan Kalyani]

Sir, if separate registration is taken then at each location you will have to appoint one person to look after the tax work, payment, return and handling department audits which will cost you. If your system is strong to extract details to work out liability then you should continue with centralised registration. It is a facility given in the provision to either have each registration for each location or have single registration for multiple locations. Thanks.

[YAGAY andSUN]

Since India is on cusp of GST, in our opinion De-Centralised Registration would be beneficial to you.

[CSSANJAY MALHOTRA]

Dear Ashok ji,

In present situation, Centralised Registration as mentioned by Sh. Kasturi ji is the best available option.

Further in GST regime, you don't have any option of Centralised Registration as GST is destination based tax, wherein you have to have separate registrations.

[Ganeshan Kalyani]

Sir, yes in view of current tax regime centralised registration is suggested to be a good option as rightly said by Sri Kasturi Sir and the views upheld by Sri Sanjay Sir.

In GST there is no option other than to get State wise registration. Thanks.

[KASTURI SETHI]

Yes, Sirs. We are to guide the querist as per the present law in force. We can not guide the assessee about what is going to happen in future as so many changes are expected in GST

[RAM SHARMA]

Dear Experts,

We have to take seperate registration for excise point of view and maintain keep record seprately in excise point of view as wel as service tax cenvat. Therefore, Excise audit will be also conduct seperately. Hence, there is no question arise for time saving in this regard. Please advice.

Thanks

[Ganeshan Kalyani]

Sir, various views has been given by experts above. Thus now you are having basis as to whether which type of register is of favourable to you. Thanks.

AI Summary

Centralized registration for service tax permitted now but state-wise registrations required under impending GST framework. Centralized registration for service tax is permissible for a single legal entity operating multiple units and can centralize aggregation of reverse charge liabilities, returns and payments where internal systems support it; however, GST will require state wise registrations as a destination based tax, and excise law/cenvat requirements may still mandate separate registrations, records and audits at unit level.