GOVERNMENT OF INDIA

MINISTRY OF FINANCE

OFFICE OF THE  COMMISSIONER OF CENTRAL EXCISE

CHENNAI-III-COMMISSIONERATE

121, Mahatma Gandhi Road,  Nungambakkam, Chennai600034.

SERVICE TAX TRADE NOTICE 11/2001                                                                                  10.09.2001

Sub.:   Introduction of Service l-ax Code (STC) Number based on Permanent Account Number (P AN) allotted by the Income-tax Department -Instructions regarding-

            Contents of the Board's circular No. No. 35/3/2001 CX-4 dated 27.08.2001, issued from F.No.137/24/99 CX-4, on the above subject are communicated herewith.

(Issued from file C.No.IV/16/304/2001 S.Tax Part II)

                                                                                                            Sd/------------------------

(V.M. BASHEER AHMED)

ASSISTANT COMMISSIONER

CHENNAI III

To

As per mailing list (Both Dept. and Trade)

-------------------------------------------------------------------------------------------------------------

Board's circular No. No. 35/3/2001 CX-4 dated 27.08.2001

            Vide Board's  circular No.493/59/99-CX (F.No.212/14/99-CX6) dated 12.11.99 PAN (Income Tax - Permanent Account Number) on the subject noted above, the following further instructions are given in the allotment of STC Number to Service Tax assessees.

2. Components of the STC Number for Service Tax assessees.

            A background note on the subject has already been circulated as Annexure-1 to above referred Circular dated 12.11.99 (Copy enclosed as Annexure 1).

            The STC number will be alphanumeric.  The first part would be the 10 Character PAN issued by Income tax authorites to the Service Tax assessees (hereinafter referred to as concerned person) to whom the STC Number is to be alloted.  The second part would comprise of a fixed 2 Character alpha-code (ST).  This will be followed by numeric code - 001, 002, 003,…etc.  Since all concerned persons requiring registration in terms of Rule 4 of Service Tax Rules, 1994 (hereinafter referred to as the Rules) will be applying for allotment of STC Number, a centralised alotment will be done at the level of :

Service Tax Cell, Headquarter or                               Where a concerned person has one

Division, as the case may be                                       premises or office; or more than one

                                                                                    premises or offices having centralised

                                                                                    billing/accounting system and hasbeen

                                                                                    allowed centralised registration ofonly

                                                                                    such premises or office where such

                                                                                    centralised billing/accounting is done

                                                                                    in terms of sub-rule 2 or 3A of Rule

                                                                                    4 of the Rules.

Commissionerate                                                         Where a concerned person has more

Than one premises or offices in respect of

                                                                                    which registration has been obtained

                                                                                    within the jurisdiction of the same

                                                                                    commissionerate.

Director General of Service Tax,                                Where a concerned person has btained

Mumbai.                                                                      Registration for more than one remises

                                                                                    or offices falling within the jurisdic-

                                                                                    tion of different Commissionerates.

3. The STC Number will be PAN + alpha-code (ST) + numeric code (001).  If there are more than one premises or offices registered of such a person having common PAN for all such premises or offices, the last numeric code of STC Number would be "001, 002, 003….".

Examples:

(1)(a) Where the concerned person has one registered premise or office:

            STC Number will be - PAN + ST + 001

            Suppose PAN is ABCDE1234H, the STC Number will be -

                                    ABCDE1234H ST 001

     (b) Where the concerned person has more than one registered premises or offices having common PAN as aforesaid:

            STC Number will be:

            ABCDE1234H ST 001

ABCDE1234H ST 002

            ABCDE1234H ST 003

4.      Procedure for allotment of STC:

(1)  Every concerned person shall be required to obtain a STC Number.

(2)  They shall apply in the form (in duplicate) given in Annexure II to this Circular along with a certified copy of PAN (letter/card issued by the Income Tax Department), to the Superintendent of Central Excise of concerned Service Tax Cell (Headquarters/Division) and obtain a dated acknowledgement.  An entry should be made in a register (serially numbered) indicating name of the concerned person, address, Service Tax Cell (Headquarter/Division), the existing Classification Code (if any), Registration Number, date of forwarding of application and STC Number (to be filled when allotted).  The Entry Number (Receipt Number) should be endorsed on the Acknowledgement Slip.

(3)  A special counter will be opened in each of the Service Tax Cells (Headquarters/Division) for receipt of the application.  The acknowledgement will be given immediately.

(4)  Where the applications are complete in al respects and there is only one registered premises or office of the PAN holder or more than one registered premises or offices within the jurisdiction of the Commissionerate (in those commissionerates where registration is centralised).  STC Number will be allotted within 3 working days and the letter will be issued by the Assistant/Deputy Commissioner of Service Tax Cell, Headquarters to the concerned person (applicant) in the format given in Annexure III.  One copy of the letter will be forwarded to the concerned Pay and Accounts Officer (PAO).

(5)  In those commissionerates where registration is decentralized and there is only one registered premises or office of the PAN holder or more than one registered premises or offices within thejurisdiction of the division, STC Number will be allotted within 3 days working days and the letter will be issued by the Assistant/Deputy Commissioner of the Division, to the concerned person (applicant) in the format given in Annexure III.  One copy of the letter will be forwarded to the PAO.

(6)  Where the registered premises or offices of the PAN holder fall within the jurisdiction of different divisions of the commissionerate, all such application will be forwarded to the Commissionerate headquarters within 3 working days of the receipt of the application in the divisional office.  The Service Tax Cell of the Commissionerate headquarters will process the application forwarded by the divisions.  Where all the registered premises or offices fall within the jurisdiction of the Commissionerate, the STC number will be issued by the commissionerate and intimated to the concerned person (applicant) in the format given in Annexure III.  The copies of these letters will be forwarded to the concerned PAO and the divisions.

(7)  Where the registered premises or offices of the PAN-holder fall within the jurisdiction of different Commissionerates, all such applications will be forwarded to DGST  within 3 working days of the receipt of the application in the Commissionerate Headquarters.  DGST  will process the applications forwarded by the Commissionerates.  TheSTC Number will be allotted by the DGST  and intimated to the concerned person(applicant) in the format given in Annexure-III. The copies of these letters will be forwarded to the concerned  PAO and the Commissionerates.

5.     National Informatic Center(NIC) is being asked to develop a suitable software as part of its "SERMON" package to capture the details of Annexure-II in the system and also to generate Annexure-III letter electronically.  Separate instructions will be issued in this regard.  For the time being, the manual exercise of  processing of applications received should commence immediately.  Once this operation is automated/data entered in computers, the Directory of STC  Number and its updates should be provided to the concerned PAO in electronic form (Floppies/|Tapes/CDs), in addition to the individual intimations  in the manner specified in  paragraph 4 of this Circular.

6.     A  database should be created in each Commissionerate on the basis of these applications.  It is proposed that more information relating to each assessee will be added in order to have comprehensive assessees' profile and to facilitate cross-referencing.

7.     In this regard, it is mentioned that it shall be compulsory for all concerned persons  registered under the Rules to obtain PAN whether or not they pay Income-Tax.  The Income-Tax Department is being requested to allot PAN on priority basis to all concerned persons.

8.     It is further mentioned that the STC Number will be introduced w.e.f. 1.1.2002.  However, the existing Classification Code (if any) will continue to be mentioned in all the service tax documents which specify/prescribe for mentioning of STC  Number. However, from 1.7.2002, only the STC Number will be used. 

9.     In the said application, the Location Code is to be filled in by the Service Tax Cell Headquarters or Divisions, as the case may be.  After re-organization of Commissionerates, the Directorate of Statistics & Intelligence has already allocated revised location two-digits-code to Commissionerates and four-digist-code to Divisions.

10.  The process for allotment of the STC  Number should be started immediately.  It should be taken up as a Special Drive by field formations and the work should be completed latest by 15.11.2001.  For this purpose, the Commissioners should interact with the field officers and the assessees so that the applications are received expeditiously and processed under the supervision of senior officers.  The work should be monitored by the Commissioner on weekly-basis.  Apart from issuing trade notice, wide publicity should be given in thelocal newspapers, including publishing the format of the application and the guidelines.  The publicity material/trade notice should also indicate the time-frame for submission of application, its processing and delivery of STC  Number to assessees.  The Commissioner will ensure that this work is completed by the scheduled time.  The DGST  will also monitor the progress on weekly-basis and issue necessary directions so that the specified schedule is strictly adhered to.

Background Note on a Common Business Identifier for Importers/Exporters

Central Excise Assessees, Income Tax Assessees, etc.

            Presently, different agencies of the government use separate numbers for identification of individuals and businesses in relation to the activities concerning the agencies.  The Director General of Foreign Trade (DGFT) allocates Importer Exporter Code No. (IEC No) for identifying importers and exporters; the Income Tax Department issues the Permanent Account Number (PAN) for all income tax, wealth tax assessees; the Central Excise Department is also registering the various manufacturers and allocating a separate series of Registration Numbers.  The RBI seperately used to allocate CNX number for identification of the exporters.

            The main objective of allocating an alpha numerical number by the Government agencies is to identify the assessees/exporters/importers.  It is also used to identify in some cases the concerned office where the person would be assessed or registered.  Further an  alpha numeric number helps in processing of the information relating to the assessees on computers.

            A Working Group comprising officers of the different departments had examined the feasibility of adopting  a common identifier by the various agencies.  It was observed that the assessee will be considerably benefitted if he has to obtain just one identification number foruse by the government agencies.  With the increasing export and import activity and universal extension of modvat, it has become necessary to develop linkages between the import transactions, the manufacturing activity and the export transactions.  Besides, maintaining a complete profile of the person concerned, wherein the records of his conduct with any of the government departments could be ascertained.  Such a linkage can help in  verification of availment of Modvat, Excise rebate on exports, etc.  Such a measure would be particularly helpful in introducing selective risk based assessment of import/export transactions, instead of verification of each and every shipping bill or bill of entry. A common identifier would immediately help obtain an overall assessment of the assessees' credentials ith ifferent government agencies.  Various government departments, particularly the DGFT, the Income Tax and the Customs and Excise Departments are presently engaged in computerisation of their operations.  There is need to share information from the computers of one of the departments with the other departments.  This exchange of information will be made  easier if there are common identification numbers.

            It has been decided to adopt the Permanent Account Number issued by the Income Tax Department as the basis for the Common Identifier.  PAN is  a 10 digit alpha numeric codeand can identify upto 96 crore business entities.  Apart from being unique (PAN is issued centrally and is generated by the computer system) it has the widest application (more than 2 crores as against about 3 lakhs importers/exporters using IE Codes and about 1.2 Lakh Central Excise Assessees using STC Number). Further, since it is not dependent on the location of the office of registration it will not get  modified on account of reorganisation of jurisdiction of the concerned department/offices.

            As per the decision of the government PAN will be only identifier for cross referencing with the other departments though each department is free to use any internal codes which it may consider necessary.

ANNEXURE-II

               FORMAT FOR APPLICATION FOR OBTAINING SERVICE TAX CODE NUMBER

To

The Deputy/Assistant Commissioner,

(Address of the service tax Cell)

               Sub: Allotment of  Service Tax Code Number - Regarding.

Sir,

                              I/We may kindly be allotted Service Tax Code Number (STC  Number) for which the details are as under:-

                              FORMAT FOR THE DETAILS (All  entries shall be in Block letters)

1.      Name of the Applicant(s)             __________________________________________

2.      Permanent Account Number       ______________________________________________

(issued by the Income Tax Department)(attested copy to be enclosed)

3.      Applicant's Premises or Offices registered under Rule 4 of the Service Tax  Rules,1944.

Existing classification code, if any  :

Registration Number                        :

Address                                              :

Telephone Nos.                                 :

Fax No                                               :

E-mail address                                  :

Division_________________               Commissionerate               _____________________Location Code(to be filled by the Service Tax Cell(Hqrs/Division)

4.   OTHER* Premises or Offices.          

·        Each of these premises or offices have to apply individually in their own jurisdiction unless covered under

 Sub-rule 2 or 3A of Rule 4 of Service Tax Rules.

[Please furnish the aforesaid information for ech of the other registered premises or offices]

I/We hereby certify that the information given in this form is true, correct and complete in every respect and that I am authorized to sign on behalf of the applicant.

Date:                                                                                                              (Signature of the authorised person)

Place:

NOTE:

1.      Use separate application form for each registered premises or offices, for allotment of STC  Number

2.      Location Code is to be filled by the Service Tax Cell, Headquarters or Division based on the new codes allotted by the Directorate of S & I

3.      Telephone numbers/Fax Numbers/E-Mail address are to be filled if available.

                    ACKNOWLEDGEMENT

Subject: Allotment of  Service Tax Code Number-Regarding.

                                Your application for allotment of STC  Number received on _______________________is hereby

acknowledged.  The Receipt Number is _____________________ dated__________________

                                                                                                           (SIGNATURE OF THE  INSPECTOR)

                                                                                                                                WITH OFFICIAL SEAL

                                                                                                                                                        ANNEXURE-III

                                                                  (Address of the Central Excise Office)

TO

(Name and address of the Applicant)

                 Sub:  Allotment of Service Tax Code Number - Application Receipt No._________dated___________

Sir/Madam,

1.                   In place of your existing Classification Code__________________the STC  Number

is______________

                                                                                                           OR

                                                     Your STC  Number is __________________________________

                                                                            (for new applicants)

2.                   The Location Code concerning  your registered premises or offices is ____________________________

3.                   You are advised to deposit Service Tax and other related Government dues in any of the authorised

                 branches of the nominated banks. i.e.__________________________

4.                   You are requested to use the STC  Number along with the existing Classification Code (if any) with effect from 1.7.2000 till 31.12.2000 on the requisite documents/records.  The STC  Number shall be exclusively used with effect from 1.1.2001.

          SIGNATURE OF THE

DEPUTY /ASSISTANT COMMISSIONER

OR DEPUTY/ASSISTANT DIRECTOR DGST WITH OFFICIAL SEAL

DATE:

PLACE: