17 September 2007
A company into training and placement service wherein the total gross receipts is less than Rs. 50,000/- per annum had applied and got its service tax registration number in 2005. As they fall far below the limit, they failed to file nil returns since registration to date. In fact, they dont fall within the preview of this. They didnt even receive any notices from the department yet.
Now the Board of Directors had decided to wind up their business as they have contineous losses and are particular in surrendering/cancelling their company's service tax registration.
What is the procedure for cancellation?
What are the late penalty charges or fees for nil returns and cancellation charges?
How much time does it take to close this case?
Request for expert's guidance in this matter. Kindly give a brief steps for this purpose. Thanks.
21 September 2007
FIRST OF ALL YOU FAILED TO TELL NTHAT WHY REGISTRATION WAS TAKEN WHEN YOU WERE BEYOND LIMIT.NOW YOU FILE APPLICATION WITH AFFIDAVIT THAT YOU ARE WINDING UP BUSINESS AND TELL ALL YEARS RECIEPT AND APPLY FOR CANCELLATION OF REGISTRATION.
21 September 2007
The company were taken in ride by the consultant to whom the work was outsourced due to time constraints.
The company had not filed any returns till date and had totally ignored the tax implications. Now when they are applying for the winding up, this issue crept in.
Are there any applicable penal fees for closing or late filing and also for NIL returns?
27 December 2007
From the facts stated by you, the taxable service is provided by the company is below the exemption limit of Rs. 4 lakhs. so there was no service tax implication on the service provided by you. Only there is default in procedural requirement. In such circumstance it is advisable to file the letter to the department intimating the facts and surrender the registration certificate.
CAclubindia
