Surrendering certificate

This query is : Resolved

Mohan (Querist)
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26 April 2012 Sub-broker to stock broker category is exempted from service tax as per notification no.31/2009 dt.1/9/2009. The assessee has neither filed any return ever since then nor surrendered the registration certificate. Now, on approaching the service tax department for surrendering certificate, the assessee has been asked to file the pending returns and pay penalty of Rs.20000/- per return before surrendering the certificate.

1. Is the assessee liable to file NIL returns until certificate is surrendered when the category itself is eliminated vide notification?
2. Does the certificate gets canceled automatically consequent to notification or it needs to be surrendered and cancelled?
3. What is the penalty amount assessee supposed to pay under the circumstances?

Thanks in advance.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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26 April 2012 i) Yes. Service is not eliminated but exempted from payment of tax.
ii) No.
iii) Late filing fee (penalty) can be waived by the jurisdictional officer since there is no tax liability.

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