GOVERNMENT OF INDIA

MINISTRY OF FINANCE

OFFICE OF THE COMMISSIONER OF SERVICE TAX

6th Floor, MHU Complex, 692 Anna Salai, Nandanam, Chennai 600 035

Phone: 24323017; 24330840 ( 7 lines)   Fax: 24323046

Website : http://centralexcisechennai.gov.in  Email : chennaiservicetax@dataone.in

 Trade Notice No. 11/2007 ST                                                                                                               Dated :   30.3.2007

 

 Sub: E Payment –Service Tax above Rs.50 lakhs - reg

Ø      E-payment has been made mandatory   for assessees who have paid Rs.50 lakhs or more in the previous year or in the current financial year (Notification No.27/2006 dated 21.9.2006 – Ann I), including CENVAT utilization    (Circular no.88/06/2006-ST dated 6.11.2006 - Ann II)

Ø      The  pre-requisites for making e-payment, procedure for payment, mode of receipts  for e-payments etc., are enclosed in Ann III.

Ø      The list of  Banks authorized to collect Service tax electronically through internet is given in the Annexure IV.(Sl No.1 to 22 , 24 to 26 – for Chennai Service Tax Commissionerate)

    All the Trade Associations are requested to bring the contents of the Trade Notice to the attention of their members in particular, and the Trade and all others concerned in general.

                         (Issued from file C.No.IV/16/1 /2007 Tech)

                                                                                                                     Sd/-

                                                                                                  (P.K. JAIN)

                                                                                                           COMMISSIONER

 

To

As per mailing list

(Both Trade and Department)

 

Annexure  I

Notification No. 27/2006-Service Tax                                        21st September, 2006

G.S.R.    (E).- In exercise of the powers conferred by sub-sections (1) and (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 (Fourth Amendment) Rules, 2006.

    (2) They shall come into force on the 1st day of October, 2006.

2. In the Service Tax Rules, 1994, in rule 6, in sub-rule (2), the following proviso shall be inserted, namely:

"Provided that the assessee, who has paid service tax of rupees fifty lakh or above in the preceding financial year or has already paid service tax of rupees fifty lakh in the current financial year, shall deposit the service tax liable to be paid by him electronically, through internet banking."

F. No. 354/85/2006-TRU

 Note.-  The principal rules were published vide notification No. 2/94-Service Tax, dated the 28th June, 1994, G.S.R. 546(E), dated the 28th June, 1994 and was last amended by notification No. 17/2006-Service Tax, dated the 25th April, 2006, G.S.R. 247(E), dated the 25th April, 2006.

 

Annexure  II

Circular No.  88/06/2006

New Delhi, the 6th November, 2006

 

F. No. 137/127/2006-CX.4

Government of India

Ministry of Finance

Department of Revenue

(Central Board of Excise and Customs)

***

To

Chief Commissioners of Central Excise (All)

Chief Commissioners of Customs & Central Excise (All)

Commissioners of Central Excise (All)

Commissioners of Service Tax (All)

Director General (Service Tax), Mumbai

webmaster@cbec.gov.in

Sir/Madam,

Sub:-  Mandatory E-Payment of Service Tax for major  assessees – reg.

 

 The e-payment of service tax has been made mandatory w.e.f . 1.10.2006, for all assesses who has paid Rs 50 lakh or more in the preceding financial year or in the current financial year.

 

2.         It has been brought to the notice of the Board that there are certain  problems like procedural delays in opening of account in designated banks and issue of user’s-id and password by banks for internet banking; delays in passing a resolution  by the Board of Directors of a company to authorize any person for making e-payment ( a requirement stipulated by banks for internet banking); systems failure, particularly at bank’s end, are causing some difficulties to the assessee in complying with the requirement of mandatory e-payment of service tax. Keeping in view the systemic and procedural problems during initial phase of implementation of this scheme, the field formation may take a lenient view in such case where there is reasonable cause for failure to make mandatory e-payment and penal action may not be initiated. At the same time, such assesses should expeditiously complete the procedural formalities for availing internet banking facility from designated banks and comply with the requirement of mandatory e-payment.

 

3.         Certain doubts have also been raised as regards the interpretation of qualifying amount of service tax of Rs 50 lakh paid by the assessee, as discussed below.

 

3.1       For a person providing taxable service from more than one premises, where each such premises is separately registered with the department for payment of service tax, the criterion of Rs 50 lakh would apply to each registered premises individually, as each registered premises is separately an assessee in terms of law. Similar is the situation in the case of a person paying service tax on taxable service received by him.  However, in case of a Large Taxpayer (LTU), the cumulative service tax paid by all registered premises of such Large Taxpayer will be taken into account for satisfaction of criterion of payment of service tax amount of Rs 50 lakh.

 

3.2.      If a person pays service tax from a registered premises for both the taxable services provided by him and the taxable service received by him on which he is liable to pay service tax, the cumulative service tax paid, i.e., service tax paid on taxable service provided from and service tax paid on taxable service received in such registered premises would be taken into account for the purposes of satisfaction of criterion of payment of service tax amount of Rs 50 lakh.

 

3.3       Further, for the purposes of calculation of this amount of Rs 50 lakh the total service tax paid by cash plus CENVAT credit would be taken into account as service tax paid amount. Therefore, if an assessee has paid service tax  of Rs 50 lakh (in preceding financial year or the current year) in cash plus CENVAT credit, such assessee, if he pays any further service tax in cash, would be required to make mandatory e-payment.

 

4.      Trade and field formations may be advised accordingly.

5.      Hindi version will follow.

 

(Gautam Bhattacharya)

Commissioner (Service Tax)

Telefax No.: 23092275

 


Annexure  III

 

e-payment of Central Excise and Service Tax

 

e-payment is a mode of payment in addition to the conventional methods of payment offered by the banks under specific security norms of Reserve Bank of India. This scheme facilitates anytime, anywhere payment and an instant cyber receipt is generated once the transaction is complete. It provides the convenience of making online payment of Central Excise and Service Tax through Bank’s Internet banking service.

 

Facility is available to:-

 

Time of Payment:-

 

Procedure for Payment:-

 

Challans are Receipts:-

 

Advantages to the customers:-


 

Annexure  IV

 

List of 26 Banks authorized to collect Central Excise duties and Service tax electronically through internet banking is below:-

 

Sl.No.

 

Name of Bank

Name of Central Excise/Service Tax

Commissionerate for which the Bank

is authorised to collect Revenue

through e-Payment

1

Union Bank of India

All Commissionerates

2

State Bank of India

All Commissionerates

3

Punjab National Bank

All Commissionerates

4

Indian Overseas Bank

All Commissionerates

5

State Bank of Tranvancore

All Commissionerates

6

Bank of India

All Commissionerates

7

Corporation Bank

All Commissionerates

8

State Bank of Saurashtra

All Commissionerates

9

Indian Bank

All Commissionerates

10

State Bank of Patiala

All Commissionerates

11

State Bank of Hyderabad

All Commissionerates

12

Syndicate Bank

All Commissionerates

13

State Bank of Bikaner & Jaipur

All Commissionerates

14

Vijay Bank

All Commissionerates

15

State Bank of Indore

All Commissionerates

16

Bank of Maharastra

All Commissionerates

17

Canara Bank

All Commissionerates

18

State Bank of Mysore

All Commissionerates

19

United Bank of India

All Commissionerates

20

Bank of Baroda

All Commissionerates

21

UCO Bank

All Commissionerates

22

Dena Bank

All Commissionerates

23

UTI Bank

All Commissionerates at Delhi, Bangalore, Hyderabad, Mumbai

24

ICICI Bank

All Commissionerates at Delhi, Bangalore, Kolkata, Mumbai

25

HDFC Bank

All Commissionerates at Delhi, Bangalore, Kolkata, Mumbai

26

IDBI Bank

All Commissionerates at Delhi, Chennai, Kolkata, Mumbai