Service tax no. and liability of tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 September 2013 Dear Sir, Maan lijie ki mr. X Internet service provider hai, jo alag alag city Ujjain, Jabalpur, Dewas, Indore me service provide karta hai, jiske waste mr. X ne har city me alag alag management bitha rakha hai. agar Service provider Decentralise billing procedure adopt karta hai, to kya ek hi Assessee ke 4 alag alag Registration karane hoge or kya ek hi assesse ki receipt ko alag alag Place/kshetra ke hisab se taxable karna hoga & Return bhi alag alag file karna hoga?

CA Suresh Jain

CA Suresh Jain (Expert)
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29 September 2013 The service provider is required to take, in this case, registration for 4 places where from billing is being done.

Could not understand second part of your query

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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24 July 2025 Here's a clear explanation for Mr. X’s scenario regarding service tax registration and liability:

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### Situation:

Mr. X is an Internet Service Provider operating in multiple cities (Ujjain, Jabalpur, Dewas, Indore) with **separate management teams in each city** and using a **decentralized billing system**.

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### Key Points:

1. **Multiple Service Tax Registrations Required:**

* Since billing and management are decentralized and each city functions as a separate billing center, Mr. X **needs to obtain separate service tax registrations** for each city/place of business.
* So, **4 registrations** will be required for the 4 cities.

2. **Separate Taxable Receipts and Returns:**

* Each registration corresponds to a distinct **service tax jurisdiction**.
* Therefore, receipts for services rendered from each city must be reported **separately under the respective registration**.
* Mr. X will need to **file separate service tax returns (ST-3) for each registration/location**.

3. **Reasoning:**

* Under Service Tax law, registration is required at every location from where taxable services are provided and billing is done.
* Decentralized billing implies multiple taxable entities for tax purposes, though Mr. X may be a single legal entity.

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### Summary Table:

| Criteria | Requirement |
| -------------------------- | ---------------------------------- |
| Number of Registrations | One for each billing location (4) |
| Filing of Returns | Separate returns for each location |
| Taxable Receipts Reporting | Report separately per registration |

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If you want, I can help draft an official note or communication explaining this to Mr. X or his tax team. Would you like that?

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