Q.NO.18. EXPLAIN THE CIRCUMSTANCE THAT CALL FOR MULTIPLE REGISTRATION.
1. Multiple Proprietorship Firms under different names: The applicant shall register individually for each of such proprietary Firm.
2. Multiple services:
a. Commencement of services at the same time: The applicant in a single application may be made mentioning all the taxable services provided by him.
b. Commencement of services at different points of time: The applicant has already registered for one service but subsequently becomes liable for another category of service, he should get his certificate endorsed for the category of service.
3. Changes in existing certification of Registration:
a. Change in information provided in ST-1: Intimated in writing to the jurisdictional assistant commissioner within a period of 30 days of such change
b. Change of place: A new registration certificate should be applied for, and the previous registration certificate should be cancelled.
c. Transfer of business: Where the assessee transfers his business to another person, the transferee should obtain a fresh certificate of registration.
Q.NO.19. EXPLAIN THE PROCEDURE FOR SURRENDER OF REGISTRATION OF CERTIFICATE?
1. Surrender of Registration of certificate:
Ø Cessation of Services
Ø Change of Place
Ø Transfer of Business
b. Procedure for surrender of Certification of Registration:
Ø Assessee should surrender the service tax registration certificate (ST-2)
Ø Superintendent of central excise will cancel the registration certificate after insuring that the assessee has paid all service tax dues to the Government under the provisions of the Act.
c. Non surrender of certificate:
Ø There is no statutory requirement for the assessee to make an application for surrender of certificate.
Ø Non-surrender of certificate does not attract any penalty.
Ø However, the Assessee should furnish half yearly returns even if no service is provided.
Q.NO.20. SUMMARIZE THE EXEMPTION AVAILABLE TO SERVICE TAX ASSESSEES?
Service Tax Exemptions:
1. General Exemption from Service Tax for certain assessee:
a) Service Provider
Services Provided by the following are exempt:
Ø Reserve Bank of India (RBI)
Ø Small service Provider (SSP) (upto a turnover of Rs.10 lakhs)
Ø Entrepreneur in Technology Business Incubator (TBI)
Ø Entrepreneur In Science and Technology Entrepreneurship park (STEP)
b) Service Receiver
Service Provided to the following are exempt:
Ø Reserve bank of India(RBI)
Ø Developers of Special Economic Zone (SEZ)
Ø Unit in SEZ
Ø United nations, International organizations, Foreign Diplomatic missions
2. SMALL SERVICE PROVIDER (SSP)
a) Exemption granted through notification No.7/2007 – ST dt. 01.03.07
b) Exemption is upto a turnover (money received) of Rs.10,00,000 in a financial year.
c) Unit in SEZ
d) On crossing the exemption limit of Rs.10,00.000/- tax is payable at the usual rate and CENVAT credit can also be availed.
e) The service Provider shall opt for the exemption.
f) Options is irreversible till the end of that financial year.
g) Registration is necessary if the turnover (collection) exceeds Rs.9,00,000.
h) For eligibility to opt for being SSP this year, the criterion is the value of service provided last year.
Eg. If Mr.Aopts to claim ?SSP benefit during the Financial year 2008-09, he has to satisfy the criterion of Rs.8,00,000, during the Financial Year 2007 – 08.
i) Exemption is available in the current year, if in the previous year, the aggregate value of taxable services provided does not exceed Rs.10,00,000/-
For eligibility to avail exemption, the criterion is the value of service received in the current year
(exemption is upto Rs.10,00,000/-)
However the above exemption shall not apply to :-
i. taxable services provided by a person under a brand name or trade name, whether registered or not, of another person; or
ii. Such value of taxable services in respect of which service tax shall be paid by such person and in such manner as specified under section 68(2) of the said Finance Act read with Service Tax Rules, 1994 i.e. where service tax is payable by the service recipient instead of service provider.
Note for reference purposes:
“ Brand name” or “Trade name” whether registered or not, that is to say, a name or a mark, such as symbol, monogram, logo, label, signature, or invented word or indicate a connection in the course of trade between such specified services and some person using such name or mark with or without any indication of the identity of that person.
a) Exemption to business Auxiliary Service in respect of production of goods on behalf of client i.e. job work Production
b) Services can be ‘exported without payment of tax” CANVAT Credit is still available for ;exported services
c) Exemption for Services Provided to Units in SEZ
According for Services Provided to a developer of SEZ or unit of SEZ for consumption within the special economic zone shall be exempt subject to the following conditions.
Ø To develop, operate and maintain the Special Economic Zone.
Ø To Establish the unit in the Special Economic Zone
Ø To maintain proper account of receipt and utilization of the said taxable services.
d) exemption for the Value of Goods and materials Sold
Conditions for availing exemption –
Ø The cost of inputs should be included in value.
Ø Cenvat credit should not have been availed for the inputs.