Service tax registration number can be surrendered in cases where assessee ceases to provide taxable services for which they have registered or for following reasons;
- Assessee’s turnover is below the threshold limit beyond which they are liable to service tax.
- Where proprietorship business has been changed to partnership or partnership has been changed to proprietorship or partnership changed to company i.e. constitution of assessee has been changed and due to this earlier service tax registration number need to be surrendered or cancelled.
- Where service tax registration number has been taken in the name of proprietor and such proprietor has died.
- Business has been shutdown
- Due to centralized registration assessee wants to surrender multiple service tax registration numbers related to various other premises or branches.
- Multiple service tax registration numbers are issued due to technical problems or for some other reasons and now assessee wants to surrender those additional service tax registration numbers.
To surrender service tax registration number, assessee is required to apply the application form online for such cancellation to central excise and on the basis of the application, if the superintendent of central excise found that all service tax dues have been paid by the assessee then he or she may cancel service tax registration number.
After filling the application form online assessee is required to submit photo copies of following documents along with the printed singed copy of the application form that is generated after filling online.
- Application form & undertaking for surrender of service tax registration
- Copies of last six ST-3 returns filled with the department
- Copies of Profit and loss account and balance sheet from the date of taking service tax registration number to the date of surrender, but for maximum of last 3 financial years.
- Information regarding show cause notices, confirmed demands.
If assessee has not filed ST-3 returns for the reason that the turnover is within the ceiling limit of small service provider who are exempted from service tax then he has to clearly mention the fact of non-filling of return in the undertaking. For surrender purpose assessee is not required to file fresh return in ST-3. If any penalty levied on assessee then that can waived under rule 7C of Service tax rules.
If profit & loss account and balance sheet have not been prepared then assessee can submit copies of income tax return.
If Income Tax return not filled then appropriate evidence has to be produced like bank statement to enable the department to verify the reason stated for surrender.
Additional Documents for surrender of service tax registration in special cases
Certain additional documents are required in special circumstances. Those special circumstances and documents required are discussed below;
- In case of death of proprietor, death certificate is required to be submitted along with other documents.
- In case of change in constitution, additional documents like partnership deed, MOA and AOA, certificate of incorporation are required to be submitted as proof for change in constitution.
- In cases where centralized service tax registration number has already been taken and services tax registration number for other premises are to be surrendered, then copy of centralized service tax registration certificate has to be submitted.
- In case assessee is having additional service tax registration number and wants to surrender the second one then the original service tax registration certificate copy which assessee wants to continue to have should also be attached along with the surrender application form.
The superintendent or inspector will verify all these documents that assessee has submitted along with the service tax registration number surrender application form. In case of deficiency, it will be informed to the assessee at the time of receipt of documents.
However, assessee is required to submit these documents along with the printed singed surrender application form within 15 days of submission of on-line application, otherwise, it gets rejected.
After approval assessee will receive an auto generated email stating that the service tax registration number has been surrendered and cancelled.