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Service tax doubt

mohit agrawal (Tax Consultant) (123 Points)

27 January 2014

sir MY client was issued registeration certificate in 2004 and till date he has not filed service tax return since the limit was below 10 lakhs and therefore he is not liable to pay service tax.However ASSt.Commissioner has issued notice for non submission of return for a period of 2011-2012 and 2012-2013.Therefore,he wants to surrender registeration certificate.What is the process for surrender?Is it manadatory to file service tax return in this case?Further in case of Suchak marketing pvt ltd it has been clarified that nil return is not required to be filed.Can u please clear my doubt?what should I do

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CA CS SUMIT GUDDEWAL (Employed) (297 Points)
Replied 29 January 2014

Rule 4(7) of the STR,1994 :- Every registered assessee, who ceases to provide the taxable service for which he is registered, shal surrender his registration certificate immediately to the Supretendent of Central Excise. On receipt of the certificate under sub-rule (7), the Superintendent of Central Excise shall ensure that the assessee has paid all taxes, dues, to the Central Government under the provisions of the Act, and the rules and the notifications issued thereunder, and thereupon cancel the registration certificate. [Inserted vide Notification No. 5/2006-ST, dt. 01-03-2006.]

CA CS SUMIT GUDDEWAL (Employed) (297 Points)
Replied 29 January 2014

OFFICE OF THE COMMISSIONER OF SERVICE - TAX, MUMBAI

5TH FLOOR, NEW CENTRAL EXCISE BUILDING, 115, M.K. ROAD,

CHURCHGATE MUMBAI- 400 020

Tel No. 22060619 Fax No. 22060618, email id:- commissioner_stax @ mtnl.net.in

TRADE NOTICE NO. 03/2007 -ST DATED 30.03.2007.

Sub: Procedure for surrendering Registration Certificate (ST-2)

in view of the amendments in Finance Bill 2007. - reg.

Attention of the Trade and all concerned is invited to Govt. of India's Notification No.6/200S-ST dated 01-03-2005 as amended by Notification No.4/2007-ST dated 01-03-2007 and Notification Nos. 26/2005-ST and 27/2005-ST both dated 07-06-2005 as amended by Notification Nos. 5/2007-ST and 6/ 2007-ST both dated 01-03-2007 respectively.

2(a). 1n view of the above amendments, it is clarified that the taxable services of aggregate value not exceeding Rs.8 lakhs are exempted from the whole of service tax leviable subject to fulfillment of the provisions of the Notification No.6/2005-ST dated 01-03-2005 as amended by Notification No.4/2007-ST dated 01-03-2007. The limit for obtaining service tax registration under Service Tax (Registration of Special Category of Persons) Rules, 2005 has also been increased from Rs. three lakhs to Rs. seven lakhs with effect from 01-04-2007 subject to the provisions of Notification Nos. 26/2005-ST and 27/2005-ST both dated 07-06-2005 as amended vide Notification Nos. 5/2007-ST and 6/ 2007-Si both dated 01-03-2007 respectively.

2(b). As per the provisions of sub-rule (7) of Rule 4 of Service Tax Rules, 1994 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.

3. Consequently, a registered service provider who either opts for exemption or otherwise ceases to provide taxable services may surrender his registration by furnishing an undertaking to comply with the conditions specified under Notification No. 6/2005 dated 1.3.2005 as amended by Notification No. 4/2007 dated 1.3.2007 and Notification Nos. 26/2005 and 27/2005 both dated 7.6.2005 as amended by Notification Nos. 5/20Q1 and 6/ 2007-Si both dated 01-03-2001 respectively and under sub-rule (8) of Rule 4 of Service Tax Rules, 1994, as the case may be to the Superintendent of Service Tax. To meet the said requirement an undertaking in the proforma enclosed is prescribed which shall be filed along with registration certificate in original.

4. All the Trade Associations are requested to bring the contents of this Trade Notice to the attention of their members in particular and the trade in general.

Sd/-

30.03.2006

(S.J. SINGH)

COMMISSIONER, SERVICE TAX, MUMBAIATESTED

(JHAMMAN SINGH)

ASSISTANT Commissioner (TECH)

SERVICE TAX: MUMBAI

End: As above.

NO. V /ST /HQ/Tech/Budget/36/2007 Mumbai, the 30th March, 2007

Copy to: As per mailing list.

FORM 0F DECLARATION & SURRENDER OF ST-2

(In terms of Notification No 04/2007-51 dated 01.03.2007 and sub-rule (7) & (8) of Rule 4 of Service Tax Rules, 1994)

The Superintendent of Service Tax,

Sir,

Sub: Surrender of Service Tax Registration ST-2 Certificate - reg.

I/We……………….. Partner/proprietor/Director of M/s ……………..situated at Mumbai hereby declare that I/ We are/were engaged in providing the services, namely…………….from the above said premises. I/ We have paid all the Service Tax and Education Cess alongwith interest (if applicable) till date. Neither any Govt. dues nor any liability/ demand of Service Tax/ Interest/ proceedings are pending against me/us. I/We have also filed the half yearly Returns, i.e. ST-3 Returns covering the period upto ………. The total turnover of my/ our firm/ company for the financial year is amounting to Rs……………………

I/ We hereby undertake that if any Govt. dues are found to be recoverable from us in future and demanded by the Department, I/ We shall pay them immediately alongwith interest.

I/ We hereby surrender the ST-2 Certificate bearing No as I/ we cease to provide taxable service and/ or availing the exemption under Notification No..............................

(Signature)

(Name of partner/ Proprietor/ Directors)

Place: Date:

*Please strike out whatever not applicable.