Section 15
Direction to treat persons as single taxable person
(a)
the persons named in that direction be treated as a single taxable person carrying on the business activities described in that direction with effect from the date as specified in the direction; and
(b)
the single taxable person referred to in paragraph (a) to be registered with effect from the date as specified in the direction.
(2)
For the purposes of subsection (1), in determining whether any separation of business activities is artificial, regard shall be had to the extent to which the different persons carrying on those business activities are closely bound to one another by financial, economic and organizational links.
(3)
The Director General may make a direction under subsection (1)
naming any person if the Director General is satisfied that—
(a)
the person is providing or has provided any taxable service;
(b)
the activities in the course of which the person provides or has provided those taxable service form only part of certain activities in the business and that the other activities in that business, whether or not that other activities are similar to the activities carried on by that person, are being carried on concurrently or previously, or both, by one or more other persons; and
(c)
if all the taxable services provided in that business were taken into account, the person carrying on that business would, at the time of such direction is made, be required to be registered by virtue of section 12.
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(4)
Any direction made under subsection (1) shall be served on each of the persons named in it.
(5)
Where, after a direction had been made under subsection (1), it appears to the Director General that any person who has not been named in that direction is providing any taxable services in the course of activities which should be regarded as part of the business activities, the Director General may make and serve on that person a supplementary direction adding that person’s name to those of the persons named in the direction under subsection (1).
(6)
Upon the addition of the person’s name in the direction under subsection (5), that person shall be treated as a single taxable person carrying on the business activities described in the direction under subsection (1) with effect from the date as specified in the direction.
(7)
Where, immediately before any direction including a supplementary direction is made, any person named in the direction has been registered in respect of the taxable service provided by him as specified in subsection (3) or (5), his registration shall be revoked by the Director General with effect from the date the single taxable person is registered under subsection (1).
(8)
Upon the revocation of registration under subsection (7), the person whose registration has been revoked together with all other persons named in the direction under subsection (1) shall be treated as a single taxable person.
(9)
In relation to a business specified in a direction, the persons named in such direction together with any person named in a supplementary direction relating to that business, being the persons who together are to be treated as a single taxable person, are referred to as “the constituent members” in subsections (10) and (11).
(10)
Where any direction is made under subsection (1)—
(a)
the single taxable person carrying on the business specified in the direction shall be registered in such name as the persons named in the direction may jointly nominate by
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notice in writing given to the Director General not later than fourteen days after the date the direction is served on the last of such persons named in the direction or, in default of such nomination, in such name as may be specified in the direction;
(b)
any taxable service provided by one of the constituent members in the course of the activities of the single taxable person shall be treated as being taxable service provided by the single taxable person;
(c)
each of the constituent members shall be jointly and severally liable for any service tax due and payable by the single taxable person;
(d)
without prejudice to paragraph (c), any failure by the single taxable person to comply with any requirement imposed under this Act shall be treated as a failure by each of the constituent members severally; and
(e)
subject to paragraphs (a) to (d), the constituent members shall be treated as a partnership carrying on the business of the single taxable person and any question as to the scope of the activities of that business at any time shall be determined accordingly.
(11)
Where it appears to the Director General that any person who is one of the constituent members should no longer be regarded as such for the purposes of paragraphs (10)(c) and (d) and the Director General gives notice in writing to that effect, that person—
(a)
shall not have any liability by virtue of paragraphs (10)(c)
and (d) for anything done after the date specified in that notice; and
(b)
on the date as specified in the notice, shall be treated as having ceased to be a member of the partnership referred to in paragraph (10)(e).
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(12)
This section shall not apply to a foreign service provider.