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.

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

Service tax registration requirement: separate registrations may be required based on PAN linkage, business name, and premises.
Whether a sole proprietor operating multiple businesses must obtain distinct service tax registrations depends on organisation and practice: some treat each business under a different name or style as requiring a separate registration number, while others state registration is linked to the proprietor's PAN so multiple registrations are not envisaged and an existing registration may be used; separate registrations may nonetheless be accepted where locations differ. Registration obligations also depend on combined turnover and whether units are treated as separate concerns or branches, with consolidated registration possible only by permission.