Meaning - Centralised biling

[NARESH GUPTA]

As per service tax rule, single registration can be obtained for different premises if there is centralised billing / accounting system. what does this centralised billing / accounting system mean? does it include issue of bills of different series according to the state in which branch office is located or single series bills are required for all branches in accordance with type of service provided by the assessee?

[Rama Krishana]

As per rule 4A, the invoice or bills etc. must be serially numbered. But it does not specify that you should maintain single invoice / bill book. However, as per common understanding, since a service provider intended to issue invoices / bills from centralized office, accounting shall also be done at centralized office. In such a situation, it is better to obtain single registration for centralized accounting basis. However, as per your query, I do not see any major adverse issue for issuing bills having serial numbers branch wise.

[hemant Shrivastava]

Dear Rama,

I have a different query. What if the invoices are being issued from a central server for different branches, mainly situated outside India, with the server situated in India, and the place of provision of service for which such invoice is raised could be either India/Foreign or both. Will these invoices be deemed to be issued from India or the respective branches? Will the location of the billing server determine whether its a centralised billing system or not?

AI Summary

Centralized Billing Under Service Tax Rules: Single-Series Invoices or Branch-Specific? Impact of Central Server Location Discussed. A discussion in a forum addresses the concept of centralized billing in relation to service tax rules. The initial query seeks clarification on whether centralized billing requires single-series invoices for all branches or allows branch-specific series. One response suggests that while invoices must be serially numbered, centralized accounting implies using a single registration for all branches. Another participant raises a different question about invoices issued from a central server in India for branches abroad, questioning if the server's location determines the centralized billing status and how it affects the place of provision of service.