Clarification on Registration requirement

[pankaj jain]

There is a dealer registered in service tax as aproprietor of two firms. He had got both the firms registered in the service tax department individually as proprietorship firms and having two seperate registration numbers. He wishes to open a new firm having different taxable activity and different premises in same zone. shall he be required to get a third registration number? Is he right in getting two different registration numbers for two different entities under same proprietor?

[Surender Gupta]

A dealer who is operating his business in different name and style, is required to have separate registration number for each business. In this situation, centralized registration facility is not available.

[Madhukar N Hiregange]

The ST registration is based on the PAN number. Therefore multiple registration for a propietor of different firms is not envisaged. The new application may be made with the earlier registration details and one registration maybe taken. Alternatively if locations are different each may get regoistered separately.

[Guest]

If your combined turnover of all proprietorships is over Rs.3.00 lakhs, you have to get registered all your concerns registered. When you cross 4 lakhs, you have to pay service tax every year. Each proprietorship concern is a different branch of the same proprietor and has to be registered seperately whether in the same or different premises. However, if each proprietorship is having more than 1 branch, each of those branches will have to be seperately registered unless you take the service tax xommissioners permission for a single registration giving reasons.

AI Summary

Proprietor with multiple firms needs separate service tax registrations; mandatory if turnover exceeds Rs. 3 lakhs. A dealer, operating as a proprietor of two firms, has registered each firm separately for service tax and seeks guidance on whether a third registration is necessary for a new firm with different activities. Responses indicate that separate registration numbers are required for each business under different names, as centralized registration is not available. Registration is typically based on the PAN number, suggesting multiple registrations for different firms under one proprietor are not standard. If the combined turnover exceeds Rs. 3 lakhs, registration is mandatory, and service tax applies beyond Rs. 4 lakhs annually. Each branch must be registered separately unless a single registration is permitted by the service tax commissioner.