E-payment

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31 July 2012 Is e-payment of service tax is compulsory?

Amol S Joglekar

Amol S Joglekar (Expert)
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31 July 2012 Yes. E payment is compulsory

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31 July 2012 Any ceiling is there

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RENGARAJ R.K

RENGARAJ R.K (Expert)
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31 July 2012 The Central Board of Excise and Customes has made electronic payment of service tax compulsory from April 1, 2010, for those who have in 2009-2010 paid a total service tax of Rs 10 lakh or more, including the amount paid by utilisation of Cenvat credit.

Prior to the notification No.1/2010, the electronic payment option was available only to those who had paid a service tax of Rs 50 lakh or more including utilisation of Cenvat credit.

CA BHARATH KUMAR

CA BHARATH KUMAR (Expert)
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01 August 2012 yes . rangaraj sir answer very good

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01 August 2012 Suppose during PY our Service Tax liability was below 10 Lakhs?

Asha Kanta Sharma

Asha Kanta Sharma

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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.