PROCEDURE FOR SURRENDER AND CANCELLATION OF SERVICE TAX REGISTRATION CERTIFICATE

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Rule 4 of Service Tax Rules, 1994 deals with
the procedure for registration for service tax. Rule 4(7) provides that every
registered assessee, who ceases to provide the taxable service for which he is
registered, shall surrender his registration certificate immediately to the
Superintendent of Central Excise. Rule 4(8) provides that on receipt of the
certificate for surrender, the Superintendent of Central Excise shall ensure
that the assessee has paid all monies due to the Central Government under the provisions
of the Act, and the rules and the notifications issued there under, and
thereupon cancel the registration certificate. The
service tax registration may be surrendered for any of the following grounds-
The
turnover is below the threshold limit;
The
change in the constitution of the business;
Death of
proprietor;
Closing
the taxable service business;
Taking
centralized registration by surrendering the other multiple registrations
pertaining to the branches; Shifting
the business premises from one jurisdiction to another jurisdiction which
requires surrendering of certificate in the old place and to get registration
in the new place;


The
Commissioner of Service Tax, Mumbai – I, vide Trade Notice No. 18/2013-ST,
dated 19.12.2013 explained the formalities for surrender of the registration
certificate. The surrender of registration is of two types – one is assessee
who has obtained registration prior to 01.04.2010 and not migrated to ACES and
the other is who got registration and migrated to ACES.
The
procedure to be followed in case of online surrender is as detailed below:
The
application for surrender of registration certificate shall be filed online
using the ACES module on www.aces.gov.in;
The
assessee who have misplaced the User-id and password for transacting in ACES
may approach the ‘Help Desk’ of the respective Division
along with filled in application for generating T-Pin;
On successful
filing of the application the assessee is to take print out of the application
generated by ACES; 
The said printed
application is to be signed by the assessee and to submit the jurisdictional
Superintendent or Superintendent(s) of ‘Centralized Surrendered Cell’ in the
concerned Division either in person or by post along with following documents-
Application form and
undertaking for surrender of service tax registration;
Copies of ST-3
returns filed with the department from the date of taking registration till the
date of surrender but up to a maximum of last six returns only;
Copies of P& L
Account and Balance Sheet from the date of taking registration to the date of
surrender but for a maximum of last 3 financial years only;
Details of show cause
notice pending adjudication;
Details of confirmed
demands;
Details of court
cases;
Details of audit
conducted;
In case of death of
proprietor the death certificate of the proprietor;
In case of change in
constitution, necessary documents showing the change of constitution;
In case of merger or
acquisition, necessary documents such as order passed by the High Court or
Article of Association to that effect;
In case of
centralized registration, copy of centralized registration showing the premises
for which surrender application is being submitted;
In case of multiple
registration copy of registration certificate for which the applicant wants to
continue the registration.
In case the assessee
has not filed ST-3 returns it is not required to file fresh return for
surrender purpose, if his taxable turnover is below the threshold exemption.
The assessee can apply for waiver of penalty under Rule 7C of Service Tax
Rules, 1994 for non filing of returns. The Department has given instructions
for waiver of penalty for non filing of return where total taxable turnover was
less than the threshold limit. The fact of non filing of return shall be
mentioned in the undertaking to be given.
In case P&L or
Balance sheet has not prepared the applicant may submit copies of Income tax
returns for the said period. If income tax return has also not been filed the
applicant should provide some evidence like bank statement to satisfy the
office about correctness of reason for surrender.
The assessee has to
submit the complete set of hard copies within 15 days of submission of online
application; otherwise the application will be rejected;
The assessee should
submit the required documents with proper indexing of all enclosures;
As far as possible
all these documents will be verified by the Superintendent or Inspect at the
time of their submission itself;
In case of deficiency
in submission of documents, the same shall be informed to the assessee at the
time of receipt of the documents;
The Superintendent
may require further information like reconciliation of the income shown in
Profit & Loss Account with the taxable income declared in ST-3 return; This
reconciliation is not necessary if assessee taking centralized registration or
in case of shifting of office from one jurisdiction to other jurisdiction or
multiple registration;
The Superintendent
shall process the application for surrender of registration and after
successful cancellation of the registration, will inform the assessee through
e-mail;
In case of any
difficulty, Assistant Commissioner/Deputy Commissioner of the concerned
Division may be approached for the resolution of grievance.

In case of the applicant who
took service tax registration prior to 01.04.2010 and has not migrated to ACES
system, it is not for them to migrate to ACES for surrender of the
registration. They may apply for surrender of certificate by a manual
application, along with other documents as required. The Department has issued
instruction to liberally cancel the registration for assessee. In this case the
intimation for cancellation shall be sent by post.
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