Service Tax and Excise – Lowering of the threshold for e-payment to rupees one lakh

F.No: 137/116/2012- Service Tax, Dated : 22^nd November, 2013

Subject:  Lowering of the threshold for e-payment to rupees one lakh

            In terms of the proviso to rule6(2) of the Service Tax Rules, 1994,  an assessee who has paid a total  service tax of rupees ten lakh or more, including the amount paid by utilisation of CENVAT credit in the preceding financial year, shall deposit the service tax liable to be paid by him electronically, through internet banking.  Vide notification number    16/2013- Service Tax dated the  22nd November, 2013, the proviso has been amended to the effect that an assessee who has paid a total of rupees one lakh  or more ( including the amount paid by utilising CENVAT) in the preceding financial year , shall have to deposit service tax electronically, through internet banking.

1. A similar amendment to the third proviso to Rule 8(1) of the Central Excise Rules , 2002 has been made vide notification no 15/2013-Central Excise (N.T.) dated 22^nd November 2013.
2. Both these notifications shall come into effect from 1^st January, 2014.
3. All Chief Commissioners are requested to kindly ensure that trade/ public notices are issued immediately so that all assessees as well as the designated banks are aware of the above changes.

Yours faithfully,

(Rajeev Yadav)

Director (Service Tax