Simple (Java Consultant) 24 February 2012
My father, who is a Senior Citizen, has rented two shops to two different banks in Mumbai. The total rent has crossed 9 lakhs and so it was clarified that we have to charge Service Tax to the Bank (Tenant) and pay the Government. Here's the link to that thread where I was advised to register -
I am registering on behalf of of my father and I went on www.aces.gov.in and clicked on Service Tax. I then created a user registration with my name and signed in. Now I clicked on "REG" tab and clicked on the option for "Fill ST-1".
I have gone through ACES registration FAQ / Help document, but I still have some questions -
(1) "Constitution Of applicant" - should this be "Proprietor"?
(2) "Nature of Registration" - since my father has two shops in different parts of Mumbai should I select "Centralized Registration for more than one premises"?
(3) "Address of Premises for which Registration is sought" <-- Should I enter one of the shops' address here or should I register our residence / home address which would be a 'THIRD' address. But this home is NOT on rent and will be entered here only for correspondence for my father.
(4) Selection of ‘Commisionerate’, ‘Division’ and ‘Range’ will be based on whichever address we put in ‘Address of Premises for which Registration is sought’, correct? So if we put that third address (our home address and this is not given out on Rent), then our Service Tax ‘Commisionerate’, ‘Division’ and ‘Range’ will be based on that home address, correct? Because the two different shops are in two different areas of Mumbai and in other Wards as compared to our home address Ward.
Your help / advice would be appreciated. Thanks for your time.
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Simple (Java Consultant) 24 February 2012
I explored the ACES S.T. registration form further and there is a specific place for "In case of application for Centralized Registration, furnish address of all the premises from where taxable services are provided or intended to be provided". So I think I can add the address of my father's two separate shops here.
So the main question is that should I put my home address under "ADDRESS OF PREMISES FOR WHICH REGISTRATION IS SOUGHT".
Then there is a "Address of the premises or office paying service tax under centralised billing or centralised accounting under sub-rule (2) and (3A) of rule 4 of the Service Tax Rules,1994". So here should I again put my home address?
jogendra (DGM-Commercial) 28 February 2012
Constitution of the firm - proprietor (owner of the shops)
Nature of registration - registration of sigle premises
Address of Premises for which Registration is sought - office or residence (not the individual shops)
For commissioner, division or range - in www.aces.gov.in know your location is given through which you can find your location. - www.aces.gov.in - services tax - know your location.
Finally your father is a proprietor of the your firm, giving service from signal premises.
Simple (Java Consultant) 01 April 2012
I finally submitted online registration today for my Senior Citizen parent for "Renting of Premises". Two shops in different parts of Mumbai are being rented out and I filled in our residential address as the centralized office while submitting information of those two different properties.
Upon completion of online registration, it gave the following instructions -
New assessee seeking registrations in Service Tax should submit to the jurisdictional Range Officer, a print out of the application form submitted online duly signed by the authorized signatory along with copies of the following documents:
(a) copy of PAN,
(b) Proof of residence,
(c) Constitution of applicant at the time of filing an application for registration,
(d)Power of attorney would be required in respect of authorized person(s).
Question 1: Since this is a case of an individual (proprietor) renting out property, what should be submitted for "(c)Constitution of applicant at the time of filing an application for registration"?
Question 2: If my father signs the registration form print, then is any further PoA required?
Question 3: It says this should be submitted to the jurisdictional Range office. Can I simply courier all signed documents or do I have to personally go and submit the documents?
Guidance will be appreciated.
Thanks in advance!
Simple (Java Consultant) 06 April 2012
Update: I called up Service Tax office and they clarified that for an individual registering for Service Tax in the Service Category of "Rent on Immovable Property", no document is required for "Constitution of Applicant" as that is only for Companies and other entities. Also, POA will not be required if the individual is signing the documents themselves. All documents may be sent by courier / post and it is not mandatory to visit their office.
Simple (Java Consultant) 06 April 2012
I will attempt to share more updates based on my experience once the Service Tax office gets back. I am hoping they issue the Service Tax number without any delay as I have diligently filled in all information on their online form and submitted all the required documents.
U S Sharma (email@example.com) 22 April 2012
1) for your case, you need to submit a letter that your registration is seeked on proprietorship ( individual), that is enough
2) balance documents are in order,
3) department may ask you to produce you municipality tax receipts of the properties to be rented, in the favor of registrant.
Simple (Java Consultant) 23 April 2012
Thank you Mr. U. S. Sharma for the clarifications.
Here are further updates that may help others trying to get “Service Tax Registration” for “Renting of immovable property” –
- I received a phone call from Service Tax registration department saying that I need to go to their office and collect the ‘Template of Annexure A’. This was a 16 point sheet that all applicants having Centralized Registration have to provide along with documents.
I was disappointed as they could have provided this directly as part of their ‘Online Registration’ process.
- Most of those 16 points / questions asked for information that I had already provided in the main registration application form ST-1. They also wanted address proof for those 2 rented properties. I explained that those tenants had taken electricity and phone connections in their name decades ago and so I did not have any such bills in my father’s name. They agreed that copies of Building Society Maintenance bills or Building Society Share Certificate is fine. But they said that their Head Office may raise a query when they forward the set of my application documents to their H.O. Since my father’s application is for an Individual (and not a Company), they asked for latest Income Tax Return copy (instead of the latest Balance Sheet). All photocopies were to be self-attested.
- It did not end here. After 4-5 visits back and forth, when I went there with all the above documents along with Annexure A, the officer/inspector there suggested that in my father’s case Central Registration is not required with multiple branch offices. Since we do not have any office per se or staff or phone belonging to us at those 2 properties that have been rented out to some other business, he said that why even register them. He suggested that instead we register our residence under ‘single premise registration’ and that the rent invoices that we prepare will be generated from this residence address and the same address will be used for all communication including Service Tax related letters. In the invoices we can state the details like “Rent for so-and-so property and its address for so-and-so month, year”. He was trying to simplify and provide guidance to a Senior Citizen.
He asked the other officer in the room and that officer agreed but then said that why should they decide and they should let the individual file whichever way they want to file. I understood that the first officer was trying to help me but I didn’t want any complications later on. I wanted one consistent and clear direction from their Service Tax Department. So he then took me to another senior madam in a near by cabin and she too agreed with a ‘Single Premise Registration’. I asked her that how will their S. T. Department know that how many properties I have rented out and that what are their addresses. She said they do not need to know. We can state all details on the invoice and pay Service Tax properly from my residence address.
- So I had go back with a letter signed by my father requesting S. T. Dept. to ‘return’ / mark my online application as ‘Resend’ and they did that on their online www.aces.gov.in system. I then came home, modified my father’s application and resubmitted it. I printed that new application and attached ID proof, address proof along with a covering letter (2 sets in total). That first office accepted the new application and told me that they will now forward to their H.O. and that I will receive the S. T. Registration online with a email notification within a week.
- I received my father’s S.T. Registration exactly after one week. He had told me that I should then download the PDF and print it and then go again to S.T. Office to get their stamp and signature on that one S.T. Registration Certificate. I did that and now my father has a S. T. Registration Certificate.
- I have started preparing Rent Invoices and will update this forum about my experience with quarterly Service Tax payments to the government and challans and half yearly Service Tax Returns filing.
It took me 6-7 visits due to all this back and forth. But I hope sharing this information will help reduce the time and effort to others in a similar situation. Hope others find this useful.