Govt. reduces threshold limit for mandatory e-payment of CE, ST | SupportBiz

News

Govt. reduces threshold limit for mandatory e-payment of CE, ST

 
The government has decided to reduce the threshold limit of mandatory e- payment from rupees ten lakhs to rupees one lakh for both Central Excise (CE) and Service Tax (ST) payment with effect from January 1, 2014.

The government notification read, “From 1st of January, 2014, a manufacturer or a Service Tax payer who has paid a duty or tax of more than rupees one lakh in the previous financial year shall be required to pay duty or tax through internet banking.”

It is expected that the increased coverage of e-payment would make paying taxes by the traders more convenient.

Currently, a manufacturer is required to pay duty of Central Excise through internet banking if the total duty paid by the manufacturer exceeds rupees ten lakhs 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 if the total tax paid by the Service provider exceeds rupees ten lakhs in the previous financial year as per rule 6 of the Service Tax Rules, 1994.