Govt reduces threshold limit of mandatory e- payment from Rs 10L to Rs 1L

Radheshyam Jadhav, TNN | Nov 29, 2013, 06.42PM IST

PUNE: The government has now decided to reduce the threshold limit of mandatory e- payment from Rs 10 lakh to Rs 1 lakh for both central excise and service tax payment with effect from January 1, 2014. Notification no. 15/2013-CE ( NT) 22.11.13 and 16/2013- Service Tax 22.11.13 has been issued by the government to notify these changes.

Thus, from January 1, 2014 , a manufacturer or a service tax payer who has paid a duty or tax of more than Rs 1 lakh in the previous financial year shall be required to pay duty or tax through internet banking, said a statement issued by the government. This step has been taken as measure of trade facilitation and it is expected that increased coverage of e-payment would make it convenient for the trade to pay taxes electronically.

Currently, a manufacturer is required to pay duty of central excise through internet banking (ie e- payment) if the total duty paid by the manufacturer exceeds Rs 10 lakh in the previous financial year as per rule 8 of the Central Excise Rules, 2002. A service provider is also required to pay service tax through internet banking (ie. e-payment) if the total tax paid by the service provider exceeds Rs 10 lakh in the previous financial year as per rule 6 of the Service Tax Rules, 1994.

http://timesofindia.indiatimes.com/business/india-business/Govt-reduces-threshold-limit-of-mandatory-e-payment-from-Rs-10L-to-Rs-1L/articleshow/26588528.cms