Surrender service tax number(the business never started)

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Nitin

Director

23 Points Posted on 18 October 2011

Dear Experts,

2 years back we were in talks with a company for their franchisee. We were almost ready to start the franchisee so we created a partnership firm and applied for tax numbers like PAN, TAN and Service Tax. However due to some reasons we didn't take the franchisee and the business never started. We never paid service tax nor was it ever due and we never filed any return. Now after 2 years we are thinking of getting the firm disolved and surrender Service Tax number PAN and TAN.

My question is whether we need to file all the missing returns before surrendering the tax numbers? We got those numbers in Dec 2009, what would be cost (incl panelty) of doing so.

I am planning to start another business with different set of partners, would it create problems for me if I don't surrender these numbers?

I'll be really grateful to get some expert advice here.

Thanks.

Best regards,

Replies (2)

CA Parag Jani

BCom CA DISA Forensic Auditor

231 Points Posted on 18 October 2011

if you hold service tax registration, then its mandatory for you to file even NIL returns at every half year end! In your case, fees for late submission of service tax returns; w.e.f. 01-04-2011 are Rs.20,000 per return not filed! Earlier it was Rs.2,000 per return! However the amended provisions do not specifically mention that its applicable with retrospective effect! And you can definetely start a new firm without worrying for anything! it will be a new registration alltogether! You need not surrender your old degistration prior to applying for new firm's registration!