Service Tax Updates
Reduction in Threshold Limit for Mandatory E-Payment of Central Excise Duty and Service Tax
It has now been decided to reduce the threshold limit of mandatory e-payment from rupees ten lakhs to rupees one lakh for both Central Excise and Service Tax payment with effect from 1st January, 2014. Notification No. 15/2013-C.E. (N.T.) dated 22.11.13 and 16/2013-Service Tax dated 22.11.13 have been issued by the government to notify these changes. Thus, from 1st January, 2014, a manufacturer or a Service Tax payer who has paid a duty or tax of more than rupees one lakh in the previous financial year shall be required to pay duty or tax through internet banking.
The Notifications are available at the following link:
Clarifications Regarding the Service Tax Voluntary Compliance Encouragement Scheme (VCES)
The Service Tax Voluntary Compliance Encouragement Scheme (VCES) has come into effect from 10.5.2013. Most of the issues raised with reference to the Scheme have been clarified by CBEC vide circular Nos. 169/4/2013-ST, dated 13.5.2013 and No. 170/5/2013-ST, dated 8.8.2013. In the recently held interactive sessions, at Chennai, Delhi and Mumbai, which were chaired by the Hon’ble Finance Minister, certain queries/issues were raised by the trade/industry. Certain issues which have not been specifically clarified hitherto or clarified adequately, have been clarified by CBEC vide Circular dated 25th November, 2013.
The Circular dated 25th November, 2013 is available at the following link:
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