Surender of Registration Certificate

[SUSHILKUMAR GOYAL]

After having been filed nil service tax return for many years in time, a person  surrendered online his Service Tax Registration Certificate on 29.10.2010, in respect of Management Consultancy Services, for the reason  - 'Closure of Business'.

 

He further submitted hard copy of 'SURRENDER ST-2' along with xerox copies of submitted NIl ST-3 Returns for the financial years 2008-09, 2009-10 and for the period from April, 2010 to September, 2010. The hard copy of 'SURRENDER ST-2' together with xerox copies of returns were submitted to Asstt Commissioner of Service Tax on 01.11.2011. After this, he did not file ST-3 Return for the half year ended 31.3.2011.

 

After submission of 'SURRENDER ST-2' he heard nothing from the department. After he  log-in the Department's website and open the Surrender page, it shows "there is no record for surrender as Surrender Request is pending with the Department".

  

1. Whether he has to contact the Department to be sure about cancellation of the registration certificate?

2. Whether he is correct not filing the Service Tax Return for the period after submission of 'SURRENDER ST-2', i.e., Oct, 2010 to Mar, 2011 and onwards.

[DR.MARIAPPAN GOVINDARAJAN]

Dear Sir,

1. You have to contact the department to be sure about cancellation of the registration certificate since the same not be updated in the system.

2. Once you closed the business you are not required to file reurn further since you have not provided any service.  You have to file return only for the period for October 2010 during which you have rendered service from 01.10.2010 to 29.10.2010.

Regards

M. GOVINDARAJAN

 

[NEERAJ KUMAR, RANCHI]

Dear Mr Goyal

After surrendering the RC on line , it needs to be accepted by the competent authority whichh is  in case of service tax , superintendent of Range. Make suure that your superintendent has accepted it online otherwise it should have been showing peding with him.

 

AI Summary

Service tax registration surrender requires departmental acceptance; file returns for periods with services and confirm cancellation.
Online surrender of a service tax registration requires acceptance by the competent departmental authority to effect cancellation; a pending online status means the surrender is not processed and the registrant should contact the department. If business has genuinely closed and no taxable services are provided after surrender, returns need not be filed for those subsequent periods, but the registrant must file the return for any period during which services were rendered prior to surrender.