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Non-assessee in Central Excise & Service Tax

by on December 5, 2012

Through registration a person or business entity enters in to tax regime. The registration code derived from registration certificate is the recognition or identity of the tax payer.

However, there arises few situations when persons or business entities who are either not required to pay tax or exempt from all tax gamut but require to pay some amount to tax collecting  government and at this point of time they need a code/recognition/identity to make payment of such amount.  These persons or business entities are called non-assesses in Central Excise & Service Tax. (Circular No. 919/09/2010-CX Dated 23/03/2010)

This registration is not required if the person or business entity is already registered under Central Excise or Service Tax.

1. What are the situations when non-assesses registration is required?

A. Persons or business entity such as (a) merchant exporter, (b) co-noticee, (c) refund applicant, (d) persons liable to pay penalties for late CE/ST registration and against whom the departmental authorities have initiated proceedings or issued a penalty order and (e) persons e.g. STPI, EOUs who are required to tender any payment under CE/ST Act /Rules are Non-assessee.

2. How can they register themselves?

A. Non-assessee registration is done online through ACES Website (www.aces.gov.in).

3. What is the registration procedure?

A. The steps are exactly the same as required for Central Excise or Service Tax Registration. The applicant has to follow following steps to register himself/itself:

1. Log in as a new/existing user on ACES Website.

2. Go to REG (Registration) menu.

3. Select form for Non-assessee. (Second option – “Fill Non-Assessee”)

Service tax non-assessee registration, non assessee

4. Fill the complete form with all compulsory fields and submit. PAN will be tallied with NSDL website.**

5. System will generate 15 digit PAN based registration code like routine Central Excise/Service Tax Registration Code.

**If the registration of Non-assessee is done to take refund or rebate, PAN must be ensured. However, PAN must be ensured in any other case and ACES website will automatically check the PAN online through NSDL database.

4. Is there any approval required to obtain such Non-assessee code?

A. No. The moment form is submitted as per above guidelines, the code generated by the system is final and therefore like routine registration of Central Excise or Service Tax, departmental officers will not be able to view this registration application. No physical submission of documents or physical verification of premises is required.

5. Can Departmental authority create Non-assessee codes?

A. Yes, just like Central Excise or Service Tax Registration codes, this code can also be generated by departmental authorities (Say the Superintendent/Inspector) after receiving relevant details from the person/business entity.

6. How to pay amount as Non-assessee after registration?

A. The Non-assessee can then pay the amount required to pay through the bank after submitting GAR-7 challan with Non-assessee 15 digit code.

CA GAUTAM JOSHI

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From → Excise, Service Tax

18 Comments
  1. Piyush permalink

    how to cancel this registration if someone want to register himself under form ST 1 with same PAN no. or he can register himself without canceellation.

    • Hi Piyush,

      There is no such rule or ACES option like cancellation of non-assessee registration.

      Register as a normal service provider from the same id and password on ACES. Once done, I would suggest you to write a written reply to the respective range that you earlier applied as non-assessee, cancelling it now and applied as service provider.

      This later will remain as record for ST audit or any other audit to come in future.

      Let us know if we can help you further any how.

      Best Regards.

  2. DEVENDRA BHANDARI permalink

    MY ASSESSES TURNOVER IS BELOW 1.5 CRORE AND THE PERSONS FROM WHOM HE IS BUYING GOODS DEMANDING THE EXCISE REGISTRATION NUMBER FROM HIM. SHALL I OPT FOR THIS NON ASSESSEE REGISTRATION OR THE REGULAR REGISTRATION UNDER A1??

    • Hi Devendra,

      Usually, the person is not required to register till he is under SSI provisions (i.e. less than 1.5 crore). However, practically speaking, if the dealer has to make business with bigger companies then they have to take registration to show that they comply the tax laws.

      In this case, you need registration of SSI if he is a manufacturer. Even after registering for SSI, you can claim exemption till 1.5 crore and file NIL returns.

      If he is a trader, he can register as Dealer.

      Registering through A-1 application will grant both the options of manufacturer as SSI and dealer so please file A-1 form online on ACES.

      Please let us know if you have any further doubts in this regard.

      Best Wishes.

  3. sandeep mahajan permalink

    Why Form A-2 is being written in notification no. 17/2009, 52/2011 and 41/2012 for filing a declaration to obtain STC number from AC or DC.whereas STC code is issued by Superintendent service tax range. When an exporter ( not a manufacturer exporter registered with central excise) is registered with service tax for any purpose he does not require to file A-2 before filing service tax refund In Form A-1. My opinion is that A-2 form has no relevance and instead it should be written that the the exporter should get registration with service tax as asessee or non assesee. As in service tax the superintendent range is empowered now to issue registration. Pls comment.

    • Dear Sandeep,

      The refund and other notifications mentioned by you exist in service tax literature since long time now and updated from time and again. ACES, through which non-assessee number is issued, is in effect since only few years.

      Arguably, in times to come they should replace the procedure of alloting number for applicants who are already not registered and want to take benefit of exprot incentives from paper based application to ACES non-assessee online application. Only time can tell us.

      Best Wishes.

  4. sandeep mahajan permalink

    Suppose form A-2 is submitted with AC/DC as enumerated in notification, can he issue Service Tax Code? he cannot as in ACES module only Supdt has the powers. Refund can be claimed by both assessee and non assessee of service tax department. isn’t it?

    • Dear Sandeep,

      Even if it issued by an authority lower in heirarchy i.e. superintendent, I would say it will not lose it’s very purpose. It’s not a permission but just a recognision as a person applying refund in your jurisdiction. If you want follow that route, apply online, get us signed by superintendent and once done intimate the same to AC/DC via separate letter. They should not have any issues.

  5. Chandru permalink

    Shall we apply for service tax refund under notification no 41/2012 after obtaining NON ASSESSEE CODE through ACES ? Is non assesee code and stc number are same? Pls clarify.

    • Dear Sekar,

      Non-assessee codes are eligible for refund to merchant exporters. However, Notification No. 41/2012 does not mention clearly whether STC code and non-assessee code are the same. I believe, because they serve the same purpose, you should file refund after applying to non-assessee code.

      Best Wishes.

  6. Vikash permalink

    1) I have wrongly registered on the web in April as non assessee , but now I want to register as assessee. What should I do ?, facing difficulty in fresh registration

    2) I am a financial management and procurement specialist with a company as a consultant. I think my services will be charged under Management consultant.

    • Dear Vikash,

      Please find answers to your queries:

      1) There is no concept of surrender of Non-assessee code so you don’t need to do any formalities for closure of that log-in. Please register as a new user for fresh registration.

      2) Go to Service tax module of http://www.aces.gov.in. Register as a new user for fresh registration and file ST-1 under management or business consultant service. ST is to be paid @ 12.36% and yes you can avail benefit of Rs. 10 lakh for the first receipts.

      Best Wishes.

  7. lalaram tiwari permalink

    I have received certain amount of money for providing scientific consultancy services as an individual for a year. Do I pay service tax or income tax on this amount received from an US based research organization? If I have to pay service tax then how and how much? Thanks in advance

    • Dear Lalaram,

      As far as service tax is concerned, please note the said service can be called as “export of services” if following all conditions are satisfied:

      1. Payment should have been received in foreign currency.
      2. The service provided shall be used outside India (i.e. in US in your case).

      For deciding both service tax and income tax matters, we need more specific information e.g. year of provision of service, description of service in detail, total amount received, delivery of service etc. Hence, we request you to provide us this information to help you further.

      Best Wishes.

  8. Rammohan permalink

    I do consultancy for US customers and raise invoice in $ for which I get inward remittance. I do have some India income of about 4 lakhs. My total income of export and domestic crosses 10 lakhs whereas my India Income is only 4 lakhs and hence no ST liability. Do I need to register as a normal assesse?

    • Dear Rammohan,

      We suggest you take normal registration to charge ST on local services and take CENVAT of input services received on both local and export services.

      Balance CENVAT if any can be refunded if refund conditions are fulfilled.

      Best Wishes.

  9. Chetan permalink

    I had taken registration for Central Excise as a second stage dealer in 2009, which I have surrendered in Oct 2013. I have even closed the firm w.e.f 31st March 2013. The department did not carry out any audit till then. Now they have sent me a notice for EA-2000 audit for all 5 years.
    They say that I have to pay Service tax on all transport & courier bills which exceed Rs. 750/-. The calculation is 12.36% service tax on 25% of the bill which exceeds Rs. 750/-
    I have done the calculation. Now the amount comes to Rs. 1545/- only.
    The department says that I have to take registration for paying this amount.
    Kindly suggest what should I do ?

    • Dear Chetan,

      All (first/second stage dealers) are covered in the person responsible to pay service tax as service receivers if they pay freight to transporters of goods.

      The ST claim by department is completely true and also note law requires you to pay the outstanding delayed ST along with interest @18% for the number of days ST is delayed (i.e. Due date less payment date) and also penalty of at least 25% of ST to close the matter from further legal proceedings.

      For ST payment, yes, you need to register first. Pay ST along with interest and penalty under correct accounting code. Last step is to file the return of ST and afterwards immidiately surrender it.

      Let us know if we can help you anyhow in compliance.
      Amount in your case is very nominal but te law is very much clear in above procedure.

      Best Wishes.

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