Upgrade and Save: Get 10% OFF on CAclubindia Pro Subscription! Use Code: SAVE10 Subscribe Now!

Service tax payment

VINAY SHARMA (ARTICLE ASSISTANT) (108 Points)

28 March 2014

Dear friends can I pay service tax through cheque if amt of s.tax is Rs. 200000 during last quarter. actually I have not maintain net banking. if I pay s.tax through cheque, can any problem arise?

Reply
Follow
Share

12 Replies

Manoj Mehta (Head Of Department (Accounts & Finance)) (1479 Points)
Replied 28 March 2014

Sir, you have to pay it online as the amount is above 1lakh. Also bank will not accept cheque in this case. Regards

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

VINAY SHARMA (ARTICLE ASSISTANT) (108 Points)
Replied 28 March 2014

Sir, can I give 2 cheque for 1 lac each on different day, can bank accept it?

Manoj Mehta (Head Of Department (Accounts & Finance)) (1479 Points)
Replied 28 March 2014

No sir they will not accept it. Please make a net banking. It is very is and very secure. Just try it. Very easy.

AMIYA KUMAR BARIK (Student CA IPC / IPCC) (222 Points)
Replied 28 March 2014

why not sir

Deepak Gupta (CA Student) (15922 Points)
Replied 28 March 2014

Because w.e.f 01.01.2014, threshold limit for mandatory e-payment of service tax has been reduced to Rs. 1 Lakh.
-- Notification No. 16/2013-ST, dated 22nd November, 2013.
.
Moreover, where the assesee fails to make the payment electronically, shall be liable to a penalty which may extend to Rs. 10,000 w.e.f. 08.04.2011.
-- Sec. 77(1)(d) of the Finance Act, 1994.

Upgrade to CAclubindia Pro. Subscribe Now!

Suman Bartwal (Student CA Final ) (21 Points)
Replied 28 March 2014

can it be done through others net bankng account??

sanchit (none) (39 Points)
Replied 28 March 2014

Sir how wl bank know abt my service tax payment of last year.. the limit of 100000 is to b seen as service tax paid in last f.y. whether by challan or by way of ccr. So i guess bank wont refuse to take payment...while determining whether e payment is mandatory or not we have to see the service tax payment if last f.y...amt paid in this fy has no relevance... Please do correct me if i am wrong

Deepak Gupta (CA Student) (15922 Points)
Replied 28 March 2014

Earlier when e-payment was made mandatory for all assesses who had paid Rs. 50 lakh or more, at that time the department had clarified the interpretation of qualifying amount of service tax paid by the assessee vide Circular No. 88/06/2006-ST, dated 06.11.2006.
.
In Para 3.3 of the said circular, it was mentioned that,
.
3.3 Further, for the purposes of calculation of this amount of Rs 50 lakh the total service tax paid by cash plus CENVAT credit would be taken into account as service tax paid amount. Therefore, if an assessee has paid service tax of Rs 50 lakh (in preceding financial year or the current year) in cash plus CENVAT credit, such assessee, if he pays any further service tax in cash, would be required to make mandatory e-payment.
.
Hence, I opined that the limit shall be applicable for current year as well.

VINAY SHARMA (ARTICLE ASSISTANT) (108 Points)
Replied 29 March 2014

If I pay service tax through others net banking account then can such other person claim expense as service tax because this payment will appear in his bank statement?

CA Deepesh Ruhela (Keen to Learn) (3271 Points)
Replied 29 March 2014

Originally posted by : VINAY SHARMA
	If I pay service tax through others net banking account then can such other person claim expense as service tax because this payment will appear in his bank statement?

no, he can't claim it as expense, since it is not related to him. Yes, the payment is appear in his bank account, but same amount also credited in his account because for making payment of service tax of that person, that person give cheque to him for making payment. Only the income which he charge from that person for making payment of service tax is become part of taxable income.

Upgrade to CAclubindia Pro. Subscribe Now!

VINAY SHARMA (ARTICLE ASSISTANT) (108 Points)
Replied 29 March 2014

Deepesh sir I'm making payment of service tax of my father. Is it confirm that my father will claim it in his return?

CA Deepesh Ruhela (Keen to Learn) (3271 Points)
Replied 29 March 2014

Yes, sir it is confirm. Your father can claim the Service Tax payment although you make the payment of same and make sure you received the cheque of same amount from your father.