Delay in granting registration certificate

Delay in granting Registration Certificate – Instructions

Sub: Issue of Registration Certificate – Reg.

1. Instances have come to the notice of the Board, that in some cases, there are inordinate delays in grant of Service tax registration to new service taxpayers, after submission of completed application in form ST-1 by them. In many cases, such service providers are asked to furnish information, which are not required as per Service tax application form. They are also asked to submit documents like income tax returns, copies of contract, balance sheets , etc., which is not required to be done.

2. In this regard, I am directed to state the Board has taken a serious view of the matter. The information required for grant of registration is already prescribed in the ST-1 format. Therefore, no additional information or document is required for granting registration. Delay in grant of registration not only affects the business of the taxpayer adversely, but also dissuades the potential taxpayers from taking registration and complying with the Service tax Laws. In case, it is felt that certain verification needs to be conducted to check the bona fides of the taxpayer, the same can be done on ex-post basis, without delaying the process of grant of registration.

3. It is, therefore, requested that it should be ensured that in no case, grant of registration should be delayed beyond the prescribed time and that appropriate action should be taken against the officers causing such delays.

(Source: C.B.E & C. Letter Dy. No.294/Com.( S.T.)/2007, dated 3-9-2007)

-- CA. V.M.V.SUBBA RAOSecretaryNellore Branch of SIRC of ICAIMobile: