26 July 2013
Sir My client is a Public limited company having around 40 offices in Punjab. All these offices have obtained their seperate service Tax No & each of them pays annual Tax of Rs. 1 Lac. Now my question is whether e-payment is compulsory for each of these officer ? I mean whether limit of 10 Lac is to be considered for each office or entity as a whole ?
Kindly refer provisio to rule 6(2) of service tax rules, 1994. It states that e-payment compulsory for service tax paid exceeding 10 Lac. So, in this reference kindly guide me regarding my doubt.
21 July 2024
As per the Service Tax rules in India, electronic payment (e-payment) of Service Tax is mandatory under certain conditions. Here's a detailed explanation:
### Mandatory E-Payment of Service Tax:
1. **Aggregate Service Tax Payment:** If the aggregate amount of Service Tax paid by an assessee exceeds Rs. 10 lakhs in the preceding financial year, then e-payment of Service Tax becomes mandatory.
2. **Voluntary E-Payment:** Even if the Service Tax liability is below Rs. 10 lakhs, an assessee can voluntarily opt for e-payment. This can be done through the authorized banks' websites or the NSDL (National Securities Depository Limited) portal.
3. **Exemption from E-Payment:** If the aggregate Service Tax payment is below Rs. 10 lakhs in the previous financial year, e-payment is not mandatory. Assessees can continue to make payments through physical modes such as cash or check at authorized banks.
### Procedure for E-Payment:
- Assessees who are required or opt for e-payment need to register on the ACES (Automation of Central Excise and Service Tax) portal provided by CBIC (Central Board of Indirect Taxes and Customs). - After registration, the assessee can log in to the ACES portal and select the option for e-payment. - The payment can be made using internet banking facilities provided by authorized banks.
### Advantages of E-Payment:
- **Convenience:** E-payment allows taxpayers to make payments from anywhere, anytime using internet banking.
- **Instant Acknowledgment:** Payments made through e-payment are immediately acknowledged online, providing real-time confirmation of payment.
- **Compliance:** E-payment ensures timely payment of Service Tax, thereby avoiding penalties or interest due to delays in physical payment processing.
### Conclusion:
While e-payment of Service Tax is mandatory if the annual aggregate payment exceeds Rs. 10 lakhs, taxpayers with lower liabilities have the option to continue with physical payment methods. However, opting for e-payment provides convenience and ensures compliance with tax regulations. It's advisable to check the latest notifications or guidelines issued by the CBIC for any updates or changes in e-payment requirements.
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