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Changes in the registration process of Central Excise & ST

CA. Dau Daga 
on 05 March 2015

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From this Budget there is change in registration process in Central Excise as well as Service Tax also.

There are changes in the registration process of Central Excise. These are as under:-

1. Earlier registration process governs from notification no 35/2001-Central Excise (N. T.) dated 26th June, 2001. Now these provision will govern from notification no 7/2015-Central Excise (N.T.) dated 1st march, 2015. These amendments are applicable from 1st march, 2015.

2. There is change in clause (1) of said notification, earlier there was language “in the form specified in Annexure-1” but now as per new provision there is “in the form provided for registration in the website www.aces.gov.in”.

3. There is no change in clause (2) of the said notification which deal with “Registration of different premises of the same registered person”.

4. There is change in clause (3) of said notification, earlier this was Registration Certificate and Number: “Registration Certificate in the Form specified in Annexure-II containing registration number shall be granted within seven days of the receipt of the duly complete application” but now clause (3) is “Online filing of application: Application for registration or de-registration or amendment of the registration application shall be filed only online on the website www.aces.gov.in, in the forms provided in the website”.

5. There is change in clause (4) of said notification, earlier it deals with transfer of business, in this new transferee shall get himself registered afresh. But now in new notification clause (4) deals with PAN based Registration: (i) Applicant for registration shall mandatorily quote Permanent Account Number (PAN) of the proprietor or the legal entity being registered in the specified column in the application form. Government Departments are exempt from the requirement of quoting the PAN in their online application. Applicants other than Government Departments shall not be granted registration in the absence of PAN. (ii) Existing temporary registrants, except Government Departments shall apply online for conversion of temporary registration to PAN based registration within three months from the date of publication of this notification, failing which the temporary registration shall stand cancelled:

Provided that if the applicant makes an application for extension of time beyond the period of three months, the jurisdictional authority on the basis of the reasons given by the applicant and upon hearing the applicant in person, grant further time of one month for migration to the PAN based registration.

Provided further that if the assessee makes an application beyond the period of three months, he shall be given an opportunity of being heard to represent his case and thereafter pass an order by the jurisdictional authority regarding cancellation or revival of the registration.

6. There is change in clause (5) of said notification, earlier it was “Change in the Constitution: Where a registered person is a firm or a company or association of persons, any change in the constitution of firm, company or association, shall be intimated to the jurisdictional Central Excise Officer within thirty days of such change”, now after new amendment it is

Clause (5) (i) Applicant to quote e-mail address and mobile number: Applicant shall quote his e-mail address and mobile number in the requisite column of the application form for communication with the Department. Existing registrants who have not submitted information regarding e-mail address and mobile number shall submit an amendment application provided in the website www.aces.gov.in within three months from the date of publication of this notification.

(ii) Business Transaction Numbers : Business transaction numbers obtained from other Government departments or agencies such as Customs Registration No (BIN No), Import Export Code (IEC) Number, State Sales Tax /(VAT) Number, Central Sales Tax Number, Company Index Number (CIN), Service Tax Registration Number, which have been issued prior to the filing of Central Excise Registration application, shall be filled in the form and for the numbers subsequently obtained, the application shall be amended. Existing registrants who have not submitted information regarding Business Transaction Number shall submit an amendment application provided in the website www.aces.gov.in within three months from the date of publication of this notification.”

7. Earlier there was Clause (6) which deals with “De-registration: Every registered person, who ceases to carry on the operation for which he is registered, shall de-register himself by making a declaration in the form specified in Annexure-III and depositing his registration certificate with the Superintendent of Central Excise” now this is Registration Number and Certificate: Pending post-facto verification of premises and documents by the authorized Officers, registration application shall be approved by the Deputy Commissioner or Assistant Commissioner within two days of the receipt of duly completed online application form. A Registration Certificate containing registration number shall be issued online and a printed copy of the Registration Certificate which was issued online through the website www.aces.gov.in shall be adequate proof of registration and the signature of the issuing authority is not required on the said Registration Certificate.

8. Earlier clause (7) was Revocation or suspension of registration: A  registration certificate granted under this rule may be revoked or suspended by the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, if the holder of such certificate or any person in his employment, is found to have committed breach of any of the provisions of the Act or the rules made there under or has been convicted of an offence under section 161, read with section 109 or with section 116 of the Indian Penal Code (45 of 1860). Now as per new provisions it will Submission of documents: The applicant shall tender self attested copies of the following documents at the time of verification of the premises:

(i) Plan of the factory premises;

(ii) Copy of the PAN Card of the proprietor or the legal entity registered;

(iii) Photograph and Proof of the identity of the applicant;

(iv) Documents to establish possession of the premises to be registered;

(v) Bank account details;

(vi) Memorandum or Articles of Association and List of Directors; and

(vii) Authorization by the Board of Directors or Partners or Proprietor for filing the application by a third party.

9. Earlier there were only seven clauses but now in new notification there is 12 clauses. These new inserted clauses are as under

10. New inserted clause (8) is Physical verification:

(i) The authorized officer shall verify the premises physically within seven days from the date of receipt of application through online. Where errors are noticed during the verification process or any clarification is required, the authorized Officer shall immediately intimate the same to the assessee for rectification of the error within fifteen days of the receipt of intimation failing which the registration shall stand cancelled. The assessee shall be given a reason opportunity to represent his case against the proposed cancellation, and if it is found that the reasons given by the assessee are reasonable, the authorized Officer shall not cancel the registration to the premises.

(ii) On the physical verification of the premises, if it is found to be non-existent, the registration shall stand cancelled. The assessee shall be given a reason opportunity to represent his case against the proposed cancellation, and if it is found that the reasons given by the assessee are reasonable, the authorized Officer shall not cancel the registration to the premises recording the complete and correct address.

11. New inserted clause (9) Transfer of Business or acquisition of factory: Where a registered person transfers his business to another person, the transferee shall get himself registered afresh. Where an applicant has acquired an old factory from a Bank or a Financial Institution, he shall get himself registered afresh.

12. New inserted clause (10) is Change in the Constitution: Where a registered person is a firm or a company or association of persons, then in the event of any change in the constitution of the firm leading to change in PAN, he shall get himself registered afresh. In other cases of change in constitution of business, where there is no change in PAN, the same shall be intimated to the jurisdictional Central Excise Officer within thirty days of such change by way of amendment to the registration details to be carried out online in website www.aces.gov.in and this will not result in any change in the registration number.

13. New inserted clause (11) is De-registration: Every registered person, who ceases to carry on the business for which he is registered, shall de-register himself by making an online application in the website www.aces.gov.in, in the form specified in the website. Where there are no dues pending recovery from the assessee, application for de-registration shall be approved within thirty days from the date of filing of online declaration and the assessee shall be informed, accordingly.

14. New inserted clause (12) is Cancellation of registration: A registration certificate granted under rule 9 may be cancelled after giving a reasonable opportunity to the assessee to represent his case against the proposed cancellation by the Deputy Commissioner or Assistant Commissioner of Central Excise, in any of the following situations, namely:—

(i) Where on verification, the premises proposed to be registered is found to be non-existent;

(ii) Where the assessee does not respond to request for rectification of error noticed during the verification of the premises within fifteen days of intimation;

(iii) Where there is substantial mis-declaration in the application form; and

(iv) Where the factory has closed and there are no dues pending against the assessee.”

All these are change in registration process and will take effectiveness from 1st day of the March, 2015.

Service Tax

The legal provisions for registration in service tax are contained in section 69 of the Finance Act, 1994, rule 4 of the Service Tax Rules, 1994 and the Service Tax (Registration of Special Category of Persons) Rules, 2005. Paragraph 2 of Circular 97/8/2007-Service Tax dated 23-8-2007 and Order No. 2/2011-Service Tax dated 13-12-2011 also explain some of procedural aspects of registration in service tax.

Now from this Budget earlier provision of Order No 2/2011-service tax dated 13/12/2011 has been deleted and come in new lookup in Order No. 1/2015-Service Tax.

Basic Changes in this regards are as follow:-

1. Applicants seeking registration for a single premises in service tax shall file the application online in the Automation of Central Excise and Service Tax (ACES) website www.aces.gov.in in Form ST-1.

2. Registration shall mandatorily require that the Permanent Account Number (PAN) of the proprietor or the legal entity being registered be quoted in the application with the exception of Government Departments for whom this requirement shall be non-mandatory. Applicants, who are not Government Departments, shall not be granted registration in the absence of PAN.

Existing registrants, except Government departments not having PAN shall obtain PAN and apply online for conversion of temporary registration to PAN based registration within three months of this order coming into effect, failing which the temporary registration shall be cancelled after giving the assessee an opportunity to represent against the proposed cancellation and taking into consideration the reply received, if any.

3. Now in new procedure applicant must have provide email id and mobile number. If any Existing registrants who have not submitted this information are required to file an amendment application by 30-4-2015.

4. In earlier registration was granted in seven (7) days but now it take only two (2) days. And also Registration Certificate downloaded from the ACES web site would be accepted as proof of registration dispensing with the need for a signed copy.

5. The applicant is required to submit a self attested copy of the following documents by registered post/ Speed Post to the concerned Division, within 7 days of filing the Form ST-1 online, for the purposes of verification:-

(i) Copy of the PAN Card of the proprietor or the legal entity registered.

(ii) Photograph and proof of identity of the person filing the application namely PAN card, Passport, Voter Identity card, Aadhar Card, Driving license, or any other Photo-identity card issued by the Central Government, State Government or Public Sector Undertaking.

(iii) Document to establish possession of the premises to be registered such as proof of ownership, lease or rent agreement, allotment letter from Government, No Objection Certificate from the legal owner.

(iv) Details of the main Bank Account.

(v) Memorandum/Articles of Association/List of Directors.

(vi) Authorisation by the Board of Directors/Partners/Proprietor for the person filing the application.

(vii) Business transaction numbers obtained from other Government departments or agencies such as Customs Registration No. (BIN No), Import Export Code (IEC) number, State Sales Tax Number (VAT), Central Sales Tax Number, Company Index Number (CIN) which have been issued prior to the filing of the service tax registration application.

6. Earlier there was no need to verify premise by authority but now in similar to Central Excise there is need to be verification same will have to be authorised by an officer not below the rank of Additional /Joint Commissioner.

7. If Deputy/Assistant Commissioner think that there is requirement of revocation of registration on basis of specified grounds than they may after giving opportunity of being heard and represent himself, may revoked.

8. The provisions of sub-rules (5A) and (6) of rule 4 of the Service Tax Rules, 1994 may be referred to regarding change in any information or details furnished by an assessee and transfer of business to another person, respectively. Similarly, sub rule (7) of the Service Tax Rules, 1994 may be referred to in case a registered person ceases to provide the service for which he has been granted registration.

9. These provisions are also effective from 1st March, 2015.


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