CBEC vide Notification No. 16/2013 dated 22.11.2013 has prescribed that where an assessee has paid total service tax of Rs.1 Lac or more including the amount paid by utilisation of CENVAT Credit, in the preceding financial year, he shall  deposit the service tax electronically through internet banking.

At present, it is mandatory to make e-payment of service tax in case of assesses who have paid service tax of Rs. 10,00,000 or more in the preceding financial year. This tax is taken:

1.  Without taking benefits of cenvat credit i.e. tax whether paid in cash or by utilizing service tax.

2. Limit of Rs. 10 lakhs is taken for each registration (premises) separately

3. This tax is calculated after taking into consideration tax paid under reverse charge mechanism.

E-payment of service tax, known as ELECTRONIC ACCOUNTING SYSTEM in Central Excise and Service Tax i.e. EASIEST (the gateway) is provided by few banks whereby tax is deposited using GAR-7 challan. In these challans assessee code should be properly written otherwise payments will be rejected.

But notification 16/2013, dt 22.11.2013 has replaced limit of Rs. 10 lakhs with Rs. 1 lakhs and this change will be effective from 01.01.2014

Notification No 16/2013-Service Tax

Dated : 22nd November, 2013

G.S.R  (E).-In exercise of the powers conferred by sub-section (1) read with sub-section (2) of section 94 of the Finance Act, 1994 ( 32 of 1994), the Central Government hereby makes the following rules further to amend the Service Tax Rules, 1994,  namely:-

1. (1) These rules may be called the Service Tax  Third ( Amendment) Rules, 2013.

(2)  They shall come into force on the 1st day of January, 2014.

2. In the Service Tax Rules, 1994,  in rule 6,  in sub-rule (2),  in the proviso,  for the words “ rupees ten lakh” , the words   “ rupees one lakh”   shall be substituted.

F.No: 137/116/2012- Service Tax

(Rajeev Yadav)


Note: The principal notification was published in the Gazette of India, Extraordinary, Part II, Section 3,  Sub-section (i) vide notification No. 2/94-Service Tax, dated the 28th June, 1994 vide number G.S.R 546(E), dated the  28th June, 1994 and was last amended by notification No 5/2013- Service Tax, dated the 10th April, 2013, vide GSR 236 (E) dated the 22nd February, 2013.


(Author ‘Sagar Gupta’ is an innovative leader in delivering corporate advisory & solutions and can be reached at sgr@sgrgupta.com)

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