Surrender of Service Tax - In case of Rental Income gone below 10L

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  1. Kuldeep Mashru

    Kuldeep Mashru New Member


    An NRI Friend of mine had previously registered for Service Tax as his taxable services (commercial rent) had been above 10L.

    Now as he had winded up the operations in India, His Taxable services have gone below 10L and it is currently 5 lacs. (FY 2015-16)

    We waited for an year to lapse as 1 year should lapse from the point when the taxable services have gone below the threshold limits

    Now the Service Tax Officer is of the opinion that the property must be sold/disposed off for him to cancel the registration.

    Please Advice.
    Thanks in Advance
  2. according to sub-rule (7) of Rule 4 of the Service Tax Rules,1994

    "every registered assessee, who ceases to provide the taxable service for which he is registered, shall surrender his registration certificate immediately to the superintendent of central excise"

    by that, he can not surrender for just because of the lower amount of services i.e less than 9,00,000. his taxable services have to cease.

    so Service Tax Officer view is correct.

    my suggestion is that wait until GST come into force and don't submit documents for provisional registration under GST then your friends Service Tax registration will be canceled.
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