Fresh registration of a transferred business is a must, for service tax

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: We have recently acquired an existing business of a repair and maintenance agency of telephone equipment. The cenvat credit balance of the repair and maintenance agency has been transferred to us and recorded in our books of accounts. Are we required to obtain fresh service tax registration for the above business acquired by us? Further, we received an amount with respect to the services provided by the transferor of business. Are we required to deposit service tax on the same?

In case a registered assessee transfers his business to another person, the transferee is required to obtain fresh service tax registration within 30 days of the transfer being made. Therefore, you are required to obtain fresh service tax registration with respect to the above business.

Transfer of credit as per the cenvat credit rules is permissible only in case of specific transfer of liabilities of the business to the person to whom the business has been transferred.

With respect to the amount you have received for services provided by the transferor, you would be required to deposit service tax on such amount as this liability has shifted upon you along with the transfer of business.

We are a food processing company having four plants in India. For transportation of our products, we hire trucks from truck owners and operators directly at an agreed rate. The hire charges depend upon the period of retention of the vehicle. The goods are transported on invoices or challans issued by us and the truck owners or operators do not issue any consignment note against the receipt of the goods. Since, we have not engaged a goods transport agency (GTA) for transporting the goods but have only taken the trucks on hire, service tax is not payable on the hire charges. However, the service tax authorities contend that we have availed the services from a GTA and non-issuance of consignment note is only a procedural lapse and hence, we are liable to pay service tax on the hire charges. Please advise.

Goods transport agency means any person who provides service in relation to the transport of goods by road and issues a consignment note.