1. Provisions of sub-rules (7) and (8) of the Rule 4 of the Service Tax Rules, 1994, provides for surrender of  Registration certificate in the case of an assessee who ceases to provide the taxable for which he is registered. The Superintendent of Central Excise after ensuring that the assessee has paid all the Service Tax dues may cancel such Registration certificate.

2. Taking note of the fact that large number of assesses are inactive and number of applications are pending for surrender/cancellation of service tax Registration, following guidelines are issued detailing the procedure to be followed in this regard.

3. An application for surrender/cancellation of the service tax registration is to be made for following reasons:-

a) Assessee’s turnover is below the threshold limit,

b) Change in the constitution of assessee, say from partnership to company or amalgamations.

c) Death of proprietor.

d) Assessee closing down the taxable service business.

e) Assessee has taken centralized registration and hence wants to surrender his other previous multiple registrations pertaining to various branches.

f) Assessee has shifted its office from the jurisdiction of one Division/Commissionerate to another and instead of requesting for change in the location code and premises code of the assessee, a fresh registration has been taken for the new address. Therefore, a need arises for surrender of the old registration.

g) Due to technical error in the system, the assessee has been issued multiple registrations for the same address. In that case, the additional registrations are required to be surrendered.

4. Assessees who wish to surrender their registration certificates shall file their application on-line using the ACES module on www.aces.gov.in. On successful filing of the online application, the assessee shall submit the copies of documents mentioned at pare 5 along with signed copy of the printout of the application generated by the ACES System to the jurisdictional Group Superintendent or Superintendent(s) of the Registration Cell’ in the concerned Divisional office. For, surrendering application, submitted by an assessee who had obtained registration  prior to 01,04.2010 and not migrated to ACES, requirement of online filing of catica- has been done away with and for this purpose the procedure given in para 8.1 below may be referred to.

5.1 All the assessees falling under category (a) to (g) of Para 3 are required to submit following documents:

(i) Application Form & Undertaking to surrender the Service Tax Registration (Annexure-I)

(ii) Copies of last six ST-3 returns filed with the department from the date of taking registration till the date of surrender but up to a maximum of last six returns

Where the assessee has not filed ST-3 returns for the period mentioned above, on account of the reasons that the turnover is within the threshold limit of small service providers exemption then it is not necessary for him to file fresh return for surrender purpose only. He can apply for waiver of penalty under Rule 7C of STR for non-filing of returns. Instructions have been issued for waiver of penalty for non filing of return where total turnover was less than threshold limit. The fact of non-filing of return should be clearly mentioned in the undertaking.

(iii) Copies of Profit & Loss account and Balance Sheet from the date of taking registration to the date of surrender, but for a maximum of last 3 financial years only. However, if Balance Sheet or Profit & Loss Statement has not been prepared, the applicant may submit copies of Income Tax Return for the said period. If said return has also not been filed then applicant should provide appropriate evidence like Bank Statement so as to enable the department to verify the reason stated for surrender. [Not required for category (e) & (g)]

(iv) Details of Show Cause Notice pending adjudication, details of confirmed demands, details of c urt cases, details of audit conducted, etc. as per Annexure-II.

5.2 In case of an assessee falling under category (c) of para 3 above, the death certificate of the proprietor needs to be enclosed along with the application form.

5.3 In case of change of constitution [category (b) of para 3] the necessary documents like Partnership deed or Articles of Association etc. showing change of constitution may be enclosed along with application for surrender. In case of merger or acquisition necessary documents such as Order passed by the Hon’ble High Court or Article of Association to that effect, may be enclosed alongwith the application of surrender.

5.4 In case of assessee taking centralized registration [category (e) of para 3], the copy of centralized registration certificate, showing the premises for which surrender application is being submitted, should also be enclosed along with the application for surrender.

 5.5 For cases covered by category (g) of Para 3 above, copy of registration tlf:icate for which the applicant wants to continue with should also be submitted with the application for surrender,

6. After submission of the required documents as per above details the Superintendent concerned may require further information like reconciliation of the income shown in the Profit & Loss Account with the taxable income declared in ST-3. However, reconciliation information would not be necessary in case of assessee taking centralized registration or in case of shifting of office from one jurisdiction to other jurisdiction or in case of technical error resulting in multiple registration or in case of turnover as per income statement/Profit & Loss account being below the exemption limit.

7. The assessee should submit the required documents with proper indexing of all enclosures, As far as possible all these documents will be verified by the Superintendent or Inspector at the time of its submission itself. In case of any deficiency , the same shall be informed to the assessee at the time of receipt of the documents. It may be noted that if the assessee fails to submit the complete set of  hard copies within 15 days of submission of on-line application, it is liable to be relected.

8.1 in case the applicant has taken Service Tax registration prior to 01.04.2010 and has not migrated to ACES system, it is not necessary for such assesses to migrate to ACES for surrendering their registration. They can apply for surrender of registration by a manual application, alongwith other documents as required, without filing the online surrender application. Instruction have been issued to liberally cancel the registration for assessee who had taken registration in the past when there was no threshold limit. Further, in those cases the intimation regarding the cancellation shall be sent by post.

8.2 The assessees who have misplaced the User-id & Password for transacting in ACES may approach the ‘Help Desk’ of the respective Division along with filled in application Form (format enclosed as Annexure-III) for generating T-pin. Using the T-pin generated by the System, which will be received by the applicant through e-mail.

9. The Superintendent shall process the application for surrender of registration and after successful cancellation of the registration, will inform the assessee through e-mail, and then the assessees can make surrendering application through ACES.

10. In case of any difficulty, Assistant Commissioner/Deputy Commissioner of the concerned Division may be approached for the resolution of grievance.

11.  Surrender Application shall be accepted in person between 3.00 to 5.00 PM in the division.

Download Format Of Application & Undertaking For Surrender Of Service Tax Registration Alongwith Trade Notice No. 40/2014 Dated 17.02.2014

(Compiled by CA Sandeep Kanoi)

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23 responses to “Procedure for Surrender and Cancellation of Service Tax Registration”

  1. Suhas says:

    i want surrender services tax number
    Please pepper suggestions
    9594830212

  2. VIJAY KUMAR says:

    I did not File a service tax return from Last 3 years as i have no bussiness and i have no transaction also in my Accounts its propertier firm. I want to cancel it but my account said you can not cancel It till you file a return of 3 years and asking money for it as i don’t have bussiness and No transaction in my account from last 2 Year why i need to file return.. Can i directly go office to service tax office to cancel it as i don’t have user id and Password Of my service tax number also. Please guide Me

  3. Mufeed says:

    I did not File a service tax return from Last 3 years as i have no bussiness and i have no transaction also in my Accounts its propertier firm. I want to cancel it but my account said you can not cancel It till you file a return of 3 years and asking money for it as i don’t have bussiness and No transaction in my account from last year why i need to file return.. Can i directly go office to service tax office to cancel it as i don’t have user id and Password Of my service tax number also. Please guide Me

  4. Kevin says:

    I did not
    File a service tax return from
    Last 3 years as i have no bussiness and i have no transaction also in my
    Accounts its propertier firm. I want to cancel it but my account said you can not cancel
    It till you file a return of 3 years and asking money for it as i don’t have bussiness and
    No transaction in my account from last year why i need to file return.. Can i directly go office to service tax office to cancel it as i don’t have user id and
    Password
    Of my service tax number also. Please guide
    Me

  5. Anand Khambe says:

    If my registration certificate (Voluntary Registration) is cancelled by Dept. after isuance of ST-2 due to some reason (eg. non submission of documents etc.), What happens if I still use it?
    Is there any penal provision? No return needs to be filed under Service Tax as SSI exemptoion claimed.
    (Came to know about it while migrating to GST).

  6. S.T.KUMARAN says:

    Hi Friends,
    I have registered ST-2 in the year of 2012, but some reason I have not done any business, as I was planning to open an courier service agency in my area after some days the courier company said the same has been given to their ex-employee in my area and I was asked to take the agency in other area which I was not interested. After that I not concentrated on this and moved on my job.
    Now, I wanted to surrender the ST-2. kindly help me how to surrender the same this is my mobile number 9710620284 since online there is no proper guideline available, I am getting confused on the procedures.

    Regards
    Kumaran.
    09710620284
    Chennai

  7. Perumal says:

    I am registered services tax registration but iam not gotten any income because not working so i will cancel my service tax registration. what i will do for cancellation

  8. j c Kapadia says:

    sir
    My son was expire I have apply for surrender of service tax no they asked for print out of surrender St-2 along with indemnity bond ie undertaking that no dues are pending for payment of dues which arise in future and print out of St-3 returns filled for last 3 years from date of filling surrender applications
    My son was died I dont know about nothing regarding his business I have to give him indemnity bond and other documents what I have to do

  9. shriniwas says:

    if assessee has taken ST Registration. but his gross receipt below Rs. 10 lakh, whether he will liable to ST or not?

  10. nitin bhere says:

    any one have annexre i , II, II, IV in word format for surrender the service tax registration

  11. Ghanshyamsinh says:

    PritEsh, did you able to surrender smoothly .. how much time it took?

  12. sajid khan says:

    document required for surrender of service tax Registration

    Reason is Death of proprietor

  13. Tushar Potdar says:

    Can someone guide me regarding surrender ST-2. Is it mandatory to file hard copy? as while submitting online surrender ST-2 we unable to save and print surrender ST-2 but we have the acknowledgement of successful filling of application. So from where we able to get the said Surrender ST-2 if it is mandatory.

  14. RIDDHI says:

    Pls. guide me as my Client is changing service tax activity from one service to another then which form I have to fill.and Which Documents I have to submit

  15. Priya Pankajan says:

    If turnover of last Previous year is above threshold limit but the current previous year’s turnover is within 10lacs can i apply for cancellation of registration in the current year.

  16. Swapnil says:

    only following option are available for surrender, what if there are any other option other than below one.

    a) Assessee’s turnover is below the threshold limit,

    b) Change in the constitution of assessee, say from partnership to company or amalgamations.

    c) Death of proprietor.

    d) Assessee closing down the taxable service business.

    e) Assessee has taken centralized registration and hence wants to surrender his other previous multiple registrations pertaining to various branches.

    f) Assessee has shifted its office from the jurisdiction of one Division/Commissionerate to another and instead of requesting for change in the location code and premises code of the assessee, a fresh registration has been taken for the new address. Therefore, a need arises for surrender of the old registration.

    g) Due to technical error in the system, the assessee has been issued multiple registrations for the same address. In that case, the additional registrations are required to be surrendered.

  17. Pradeep says:

    Our Partnership firm was allotted service tax in 2007 based on OLD PAN (out of multiple PAN) which pan we have already surrendered. Hence PAN no. which is part of service tax number was wrong. And with Further with reference to order no. 1/2015 service tax dated 28/02/2015 which says that all registrant not having PAN based registration shall file amendment and obtain based registration.
    We further email our issue to ACES help desk, however they advised us to get new registration based on valid pan. Following instructions we first applied for new service tax no. based on valid PAN and we have been also allotted Fresh ST. no. based on Valid PAN, we have received ST-2 by email. As we have already received new ST -2, we applied for surrender of OLD ST-2 but at time of submission of document for surrender to range, Officer put remark on Ack letter to refer to TRADER Note 40/2013 dt-17-02-2014.

    However we are clueless as to which option is to be selected for reason for surrender. In online surrender Application we have mention below reason “NEW SERVICE TAX REGISTRATION BASED ON VALID PAN NUMBER IS TAKEN, HENCE
    OLD ST-2 SERVICE TAX REGISTRATION NO. AAAFA4364AST001 IS SURRENDERED.”.

    FURTHER PLEASE NOTE THAT OUR LATEST 2 ST-3 RETURN WERE FILED BEFORE DUE DATE, BUT OUR EARLIER RETURN WERE FILED LATE. THOUGH WE FILED EARLIER RETURN LATE, we had paid interest for late payment of service tax in Challan,

    WE REQUIRE YOUR EXPERT OPINION AS
    1) WHICH OPTION IS TO BE SELECT FROM SR NO. “a TO g”
    2) WHETHER WE WILL BE LIABLE TO PAY PENALTY FOR LATE FILING ST-3 RETURN

    AWAITING YOUR VALUBLE ADVICE.

  18. Tasneem Ahmad says:

    i have a problem in service tax surrender anyone please help me and give me some suggestions. Maine sep 2012 mein service tax mein registration karaya tha per ab tak maine nil bussiness kiya hai . to phir maine nov 2014 mein surrender karne ka soocha aur online surrender application dala per some technical error main online surrender ka print out nahi le paya phir bhi maine surrender application aur relevant documents laga kar surrender application post se bhej diya . phir supritendent kehta hai mere sysytem mein koi online request nahi show ho rahi surrender ki . phir bhi main ne file per surrender likh diya aur thumhara kaam ho gaya pareshaan mat ho. per maine suna hai jab tak aces per login nahi band hoga tab tak registration surrender nahi hoga. aur aces per login hoga to mujhe har six montly return bhi dalna padega. to please help me mera service tax division lucknow range 5 hai main apne aces ke khuch comments paste karta hoon jo login hone per dikhata hai
    jab main surrender per click karta hoon to ye likh ke ata hai
    “There is no record for Surrender as Surrender Request is Pending with The Department”
    Aur jab main ST2 dekhta hoon status to ye dikhata hai.

    13/02/2015 Service Tax Registration VIew
    ST2

    aces.gov.in/STASE/ui/jsp/reg/getlistofst2forassessee.do 1/1

    SDR PRA REF REG HELP RET REP
    Service Tax View
    ST2
    Applications Logged in maliktrader1 Sign Out
    SEARCH CRITERION
    From Date : 01/09/2012 * Till Date : 12/02/2015 *
    Sl.No. Registration Number AssesseeName Date Of Filing Status
    1 AOEPA5881PSD001 M/s.Malik Trade
    rs 17/09/2012 Surrender Request initiated
    ACES Application Processing Time : < 1 Second © Copyright Information 2007

  19. Pritesh says:

    Have a question, How much does it cost to apply for a cancellation or closure for Service Tax? I am in the process of doing the same. Have a small firm ( Partnership with my younger sibling & we have dissolved it) My CA told me the process is tedious. Please advice.

    Pritesh J

  20. Jigar says:

    Nice information

  21. Suneel Sonawane says:

    Useful tips. This will helps to cancelled/surecnder Service tax registration certificate.

  22. manish says:

    notice u/s 148 is valid for A.Y.2007-2008 if given in march 2014 if income escaped is below 1 lakh

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