Instructions to Field Formations DATE 03/11/2006

Subject: Amendment in the Service Tax Rules, 1994 with regard to centralised registration for Service Tax assessee -reg.
The Service Tax Rules, 1994, have been amended vide notification No. 29/2006-ST, dated 2.11.2006 to simplify the procedure for grant of centralised registration for service taxpayers who provides service from multi-location has been simplified. Further, the scheme has also been extended to such taxpayers, who though not providing taxable service, are liable to pay service tax under in terms of section 68 (2) of the Finance Act, 1994. In addition certain technical amendments to facilitate audit of service tax assessee has also been made. The amendments made are as follows.

2. (I) Centralised registration of assessee:

(A) Category of person eligible for centralized registration: Hitherto, only the person providing taxable service from more than one premises and having centralized billing or accounting in respect of such service could take centralized registration of premises from which such centralized billing was done or where such centralized accounting system was maintained. The Service Tax Rules have been amended to extend the facility of centralized registration to any person liable to pay service tax. Therefore, with this amendment, the service receiver or any other person made liable to pay service tax, having centralized accounting/billing for such service will be eligible to take centralized registration.

(B) Manner of granting centralized registration: Hitherto, centralized registrations were granted by the Commissioner or the Chief Commissioner of Central Excise or DGST, as the case may be, depending on the location of premises where centralized billing or accounting system is maintained as well as from where the taxable service is provided. The Service Tax Rules have been amended to simplify this procedure. It has now been prescribe that henceforth, in all cases where tax payer opts for Centralised registration, including those who have applied for such registration but have not been granted such centralised registration, the registration will be granted by the Commissioner of Central Excise/ Service Tax having jurisdiction over the premises for which centralized registration is sought (from where centralized billing is done or centralized accounting system is maintained). However, this amendment would not affect centralized registration already issued before 2.11.2006.

(II) It has been prescribed that on demand by audit parties deputed by the Comptroller and Auditor General of India, the assessee will make available the records as maintained by him with respect to taxable services. Similar provision already exists in the Central Excise Act.

3. Accordingly, in view of these amendments, all application for centralised registration pending with the Chief Commissioners or DGST, may please be transferred to the Commissioners, having jurisdiction over the premises for which centralised registration is sought. The Commissioner of Central Excise granting centralised registration, shall within a week of granting such centralized registration, send a copy of Form ST-2 (Certificate of Registration) to all Commissioners in whose jurisdiction the associated premises located, i.e.

(a) premises from where taxable services are provided; or

(b) premises where taxable services are received; or

(c) premises associated to a taxable service, in any manner, making him liable to pay service tax.

F. No. 137/50/2005-CX.4

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