Electronic Payment of Service Tax/ Central Excise mandatory for those who paid tax of more than One lakh in preceding financial year
The Central Government vide Notification No. 16/2013-ST dated November 22, 2013 (“the Notification”) has amended the proviso to Rule 6(2) of the Service Tax Rules, 1994 (“the Service Tax Rules”) and similarly, amendment has been made in the third proviso to Rule 8(1) of Central Excise Rules, 2002 (“the Central Excise Rules”) vide Notification No. 15/2013-CX (N.T.) dated November 22, 2013 (“the Notification 15/2013”).
Presently, where an assessee has paid Service tax or Central Excise in Cash or through Cenvat credit of Rs. 10 lakh or more in the preceding financial year, he is required to make payment of Service tax or Central Excise electronically through internet banking.
Now, this limit is reduced to Rs. 1 Lakh only under the Service Tax Rules and the Central Excise Rules.
Note: It is pertinent to note that the above amendment will be applicable from January 1, 2014.
FCA, FCS, LLB, B.Com (Hons)
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