Centralised accounting system

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CA Ashwani Agarwal (Querist)
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25 August 2012 What do u mean by a Centralised accounting system?

An entity has 3 branches in 3 states. It has the same name. Single PAN No.
At the year end, a single balance sheet and a single P & L A/c is made of all the 3 premises. Is it a centralised Accounting System?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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25 August 2012 Centralised accounting system or centralised billing system in service tax, the billing & accounting of all the services provided by service provider and all the services provided where ever in India has to be billed and accounted in single premise.

That billing address need to be informed with department and that service tax registration has to be taken in the particular jurisdiction

CA Ashwani Agarwal

CA Ashwani Agarwal (Querist)
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30 August 2012 But there is not the word "And". The word is "or".

Doesnt is mean that that billing may be done seperately but if accounts are centralised then also you can take centralised registration?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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30 August 2012 When you are given centralised registration under service tax, then billing & accounting has to be done centralised address mentioned in the service tax certificate.

CA Ashwani Agarwal

CA Ashwani Agarwal (Querist)
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30 August 2012 Is it just your point of view sir or has there been a clarification on this matter?

As the law says that a person having a CENTRALISED BILLING OR ACCOUNTING SYSTEM can get a Centralised certificate.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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30 August 2012 Purpose of centralised registration, Assesseee has to maintain the billing & accounting system in the centralised registration place also need to raise the bills from there and pay the service tax & submit the returns to the particular jurisdiction only.

please refer the department FAQ dated 29th September 2011 Q.2.8. points given as below

Service providers having centralized accounting or centralized billing system who are located in one or more premises, at their option, may register such premises or office from where centralized billing or centralized accounting systems are located and thus have centralized registration.
Commissioner of Central Excise/Service Tax in whose jurisdiction centralized account or billing office of the assessees exists, is empowered to grant centralized registration in terms of sub – rule 2 & 3 of Rule 4 of Service Tax Rules,1994

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