What shall I do ? How do I diagnose and fix this issue ?

 

Provide more info?

Or...

 

Light was on when purchased so I can't provide much info on how or when it turned on.

I tried the paper clip test, light blinked once and remained on after that. Is there a code for that ?

Does Honda charge to check and diagnose the issue ?

 

Sure you did it correctly
&
Does Honda charge to check and diagnose the issue ?
would think yes

 

Probably not. I'll just check tomorrow if I can borrow a SRS code reader at work since I work at a dealership myself.

 

Follow the method in this video. It works exactly the same in the S2000 I've done it. This is a basic reset, you should see the light go off for at least a sec or two during the reset. That's how you know you did it properly and rule it out as a fix.

[media]http://m.youtube.com/watch?v=4t4ds8ae9tM[/media]

If that doesn't work then use that paperclip in the OBD port to get the code for the light. You will need to stick it into pins 4 and 9 and count how many times the light blinks.

This is the full code list:

http://honda-tech.com/tech-misc-15/f...-list-3111979/