Well i really dont know why Apple has set so many complications for the app submission.Now coming towards the solution, What i did was, I used the same APP ID but i reconfigured it by unchecking the iCloud option, then i renewed the provision and distribution profiles downloaded them, deleted the old profiles from the xcode organizer added the new ones (those i downloaded after renew), first my app started giving error during the that "key does not match .... " then i went to the built info of the target there i simply set "iphone distribution" in code signing, Thats it i build the app and uploaded via organizer, and it went with the status "Waiting for Review" :)
Cheers
MGD