Circular No.35/3/2001-CX.4
 27th August, 2001

F.No.137/24/99-CX.4
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs

Subject: Introduction of Service Tax Code (STC) Number based on Permanent Account Number (PAN) allotted by the Income-tax Department- Instructions regarding.

In continuation of Board’s Circular No.493/59/99-CX (F.No.212/14/99-CX.6) dated 12.11.99 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-I to above referred Circular dated 12.11.99 (copy enclosed as Annexure-I).

The STC number will be alphanumeric. The first part would be the 10-Character PAN issued by Income-tax authorities to the Service Tax assessees (hereinafter referred to as ‘concerned person’) to whom the STC Number is to be allotted. 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 centralized allotment will be done at the level of:

Service Tax Cell, Head quarter or Division

as the case may be

Where a concerned person has one premises or office or more than one premises or offices having centralized billing/accounting system and has been allowed centralized registration of only such premises or offices where such centralized billing/accounting is done in terms of sub-rule 2 of 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.

Directorate General of Service Tax, Mumbai (DGST)

Where a concerned person has obtained registration for more than one premises or offices falling within the jurisdiction 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, ….., etc."

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 2001

(b) Where the concerned person has more than one registered premises or offices having 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 (Headquarter/Division) and obtain a dated acknowledgment. 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 (Headquarter/Division) for receipt of the application. The acknowledgement will be given immediately.

  4. Where the application are complete in all 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 centralized). STC Number will be allotted within 3 working days and the letter will be issued by the Assistant/Deputy Commissioner of Service Tax Cell, Headquarter to the concerned person (applicant) in the format given in Annexure-III. One copy of the letter will be forwarded to the concerned Pay & Accounts Officer (PAO).

  5. In those Commissionerates where registration is decentralized and there is only one registered premise or office of the PAN-holder or more than one registered premises or offices within the jurisdiction of the Division, STC Number will be allotted within 3 working days and the letter will be issued by the Assistant/Deputy Commissioner of the Division to the concerned persons (applicants) 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 applications 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 Headquarter will process the applications 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 persons (applicants) 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 in DGST within 3 working days of the receipt of the application in the Commissionerate Headquarter. DGST will process the applications forwarded by the Commissionerates. The STC Number will be allotted by DGST and intimated in the concerned persons (applicants) 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 Centre (NIC) is being asked to develop a suitable software as part of its "SERMON" package to capture the details of Annexure-II in the Systems and also 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 clarification 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 Headquarter or Division, 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-digits-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 the 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 the local newspapers, including publishing the format of the application and the guidelines. The publicity material/trade notice should also indicate the time-frame for sub-mission 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:

11. Each Commissioner will report to the DGST by 01.12.2001 about completion of this work. DGST will send a report to the Board by 15.10.2001, which will also include the status of allotment of STC Number by the DGST.

12. The Principar Chief Controller of Accounts under Central Board of Excise & Customs will take immediate measures to develop suitable software for Service Tax revenue accounting in consultation with NIC.

13. Receipt of this Circular may please be acknowledged.

14. Hindi version will follow.

Annexure-I

Background Note on 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 business 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 separately used to allocate a CNX number for identification of the exporter.

The main objective of allocating an alphanumerical 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 in alphanumeric number helps in processing of the information relation to the assessee 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 considered benefited if he has to obtain just one identification number for use by the various Government agencies. With the increasing import and export activity and universal extension of modvat, it has become necessary to develop linkage between the import transaction, 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 Department 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 assessee’s credentials with different Government agencies. Various Government Departments particularly the DGFT, the Income tax and the Customs and Excise Department are presently engaged in computerization 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-digits alphanumeric code and can idenfity upto 96 crores 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 assessees as against about 3 lakhs importers exporters using IE Codes and about 1.2 lakhs 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 re-organization of jurisdiction of the concerned Department/Offices.

As per the decision of the Government, PAN will be the 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

(In Duplicate)

(To be filled in the Service Tax Cell)

FORMAT FOR APPLICATION FOR OBTAINING SERVICE TAX CODE NUMBER

To

The Deputy/Assistant Commissioner,

(Address of the Service Tax Cell).

Subject: 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 Income Tax Department) (Attested copy to be enclosed)

3. Applicant’s Premises or Offices registered under Rule 4 of Service Tax Rules, 1994.

Existing Classification Code, if any :

Registration Number :

Address :

Telephone Nos. :

Fax Nos. :

E-mail address :

Division ___________ Commissionerate ____________ Location Code (To be filled by the Service Tax Cell (Headquarter/Division)_____________________

4. OTHER* Premises or Offices

*[Each of these Premises or Offices have to apply individually in their own jurisdiction unless covered under sub-rules 2 or 3A of Rule 4 of Service Tax Rules]

Sl. No.

Name and address

Service being provided

Registration No.

Tel. No (s).

1

2

3

4

5

 

Fax No.

E-Mail No.

Division

Commissionerate

6

7

8

9

 

 

 

 

[Please furnish the aforesaid information for each 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.

(Signature of the authorized person)

Date:

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, Headquarter 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)

Subject: 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 authorized branches of the nominated banks, i.e., ____________.

4. You are requested to use the STC Number Code along with the existing Classification Code (if any) with effect from 01.07.2000 till 31.12.2000 on the requisite documents/records. The STC Number shall be exclusively used with effect from 01.01.2001.

Signature of the
Deputy/Assistant Commissioner of Central Excise
Or Deputy/Assistant Director, DGST

With official seal

Date:

Place: