Every assessee having a service tax registration number and who ceases to provide taxable service for which he is registered shall surrender his service tax registration certificate immediately to the Superintendent of Central Excise.
Temporary suspension of business or getting no business for the time being will not require surrender to service tax registration. It’s only when the service provider permanently ceases to provide the taxable service for which he is registered would he be required to surrender his service tax registration.
Where an assessee transfers his business, the old service tax registration would not be valid and the buyer of business would be required to obtain service tax registration on his own name. Similarly, conversion of individual membership into partnership or corporate membership and vice-versa would also require fresh registration.
Although Rule 4(7) of Service Tax Rules 1994 states that the service tax registration certificate should be surrendered immediately, no penalty would be levied in case the service tax registration is not surrendered. It’s only that all assessees having the service tax registration certificate would be liable to furnish the service tax returns.
- Recommended Read: Due Date for Filing Service Tax Returns
Application for Cancellation of Service Tax Registration
The assessee who wishes to surrender his service tax registration certificate shall logon to his account on www.aces.gov.in and then click REG>Surrender as shown below
The assessee would then be required to click on the service tax no. which he intends to surrender. The form for surrendering service tax registration i.e. ST-2 would open and the assessee would be required to furnish details in the last 3 columns stating the reason for request for cancellation of service tax registration.
After furnishing all details in the form, click Surrender ST-2. The assessee would be required to take a print out of the form that appears and submit the same to the Superintendent with a covering letter as well as Original ST-2.
The superintendent may check the books of the assesee to ascertain that all service tax has been duely paid by the assessee and no amount is payable by the assessee to the department. Obtaining a certificate from a Chartered Accountant in this regard may also help stating that no amount is due.
Once both the superintendent and the AC/DC have approved the cancellation of service tax registration, you would receive an auto-generated mail for the same. You would not be able to login to your account on www.aces.gov.in once your request for cancellation of service tax registration has been approved.