TMI BlogPayment of Service Tax by BranchX X X X Extracts X X X X X X X X Extracts X X X X ..... An company having 20 branches with seperate service tax registration for all the branches. Some expense's which are commonly incurred for all branches say manpower supply, which is governed under RCM are paid by the head office which is not a Input Service Distributor. The invoice received is in the name of Head office finding reference of all branches. Head office pays the service tax liabili ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty on the total invoice under RCM . There after the head office transfers the expenses to all branches proportionately. It doesnt transfer the service tax amount paid by it. Will the above transaction be deemed as shifting of liability of tax. Is this correct under service tax? - Reply By Ganeshan Kalyani - The Reply = Sir, what I understand is that you are paying service tax centrally for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... service availed at respective locations as the bill is received in HO address. Further for accounting purpose you are debiting the proportionate expense to the respective locations. This is requirement as per Accounting Standards. The accounting does not impact service tax liability. Thanks. - Reply By Vinay Jhawar - The Reply = Department is saying that there is shifting of liability which is w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rong. - Reply By Ganeshan Kalyani - The Reply = Sir, as far as you are correctly discharging your service tax liability there is no issue. You should re-check and convince the department. Thanks. - Reply By KASTURI SETHI - The Reply = Sh.Vinay Jhawar Ji, I fully endorse the views dated 22.6.2016 and 23.6.2016 of Sh.Ganeshan Kalyani, Sir. Where is revenue loss or procedure l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apse in the eyes of Service Tax law ? The department is concerned with the correct and true payment of Service Tax. However, it is suggested that either you should get Centralised Registration or get your Head Office registered as Input Service Distributor. Keeping in view of changes in Budget, 2016 regarding ISD, it is better to get your H.O. registered as ISD. It will be conveni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent and safe for future. - Reply By Ganeshan Kalyani - The Reply = Sir, hope your query is resolved. Thanks. - Payment of Service Tax by Branch - Query Started By: - Vinay Jhawar Dated:- 22-6-2016 Service Tax - Got 5 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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