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

Centralised billing: centralised invoicing/accounting can justify a single service tax registration while invoices must be serially numbered. Centralised billing and accounting can justify a single service tax registration when invoicing and accounting are performed centrally. Invoices must be serially numbered, but the law does not mandate a single physical invoice book; branch wise serial number series is generally acceptable. Invoices generated from a central server for branches in other jurisdictions raise questions about where invoices are deemed issued and how the place of provision is characterized.