Registration unit under Service Tax Act

[SURYAKANT MITHBAVKAR]

We are manfacturing unit registered under Excise and service tax Act. we have one more unit which is closed long back now we decided to let out the same on Rent basis. While receiving the rent we have to charged service tax to that client.

My query is that can we issue service tax Invoice to rented party from our existing registration Unit or we have to register the same unit under service tax Act.

[Vijay kumar]

Dear Sir, any invoice under Rule 4A of the Service Tax Rules, 1994 has to be raised by the service provider i.e in this case, the owner of the premises charging rent and service tax from the tenant. If the owner of the premises is already registered under the Service Tax Act, there is no need to obtain separate registration and you can undoubtedly issue the service tax invoice from existing registration.

[NEERAJ KUMAR, RANCHI]

Dear Mr Mithbavkar,

Let me state here first what I could understood of your query

I think your question is you have two units, one is running and registered under central excise as well as in service tax, the second unit is closed since long, now you want to let out that 2nd unit , if I am right here is your answer:

Please check status of the second unit which is closed since long, whether that unit is having a self entity or that unit has been merged with this one which is running, what I mean is who owns the unit which is closed , if that unit is owned by the unit which is running and as per all statutory records this has been declared, yo can carry on with the S T registration that you may be having for the unit which is running, you just need an amendment to that but if the above is not the situation you should get a fresh registration in the name of the second unit or its owner as the case may be.

Hope answered your query

With regards,

Neeraj

[DEEPAK SHARMA]

That continuation with the exissting STRC is conditional, and depend upon that, wether the both comapny is owned by same prop. or partner or the both company is Private or Public Limited. there is very simple view that if the Balance Sheet of Both unit is one. you can do with existing STRC with simple amendmet as renting service. otherwise you need fresh regd. 

[YAGAY andSUN]

It will be better if you seek a separate registration under Service Tax Laws.

AI Summary

Service tax registration: invoice for rental services may be issued from existing registration if same legal entity. Service tax invoices for rental of premises must be raised by the owner as the service provider. If the owner is already registered for service tax and the letting falls within the same legal entity and registration, the existing registration can be amended to cover rental services; if the closed unit is a distinct legal or accounting entity, a fresh service tax registration for that unit or its owner is required. Verify ownership and statutory records before deciding amendment versus fresh registration.