E- Payment of Service Tax

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This query is : Resolved

CA HANI (Querist)

16 September 2009 Is it compulsory to make all service tax payment as an E- Payment mode ?.

b) suppose if an assessee has to make service tax payment of Rs. 60 lacs and he has not opted for E-Payment facility with his bankers , can he make the cheque payment and get the credit of the same in his service tax liability ?.

Shyam Lal Naik

Shyam Lal Naik (Expert)

16 September 2009 Assessees who have paid Service tax of Rs. 50 L, either during the previous year, or during the current year is required to pay taxes by electronic mode. The 50 L shall include amt adjusted through Cenvat as well.

Payment can be made through cheque. But penalty for contravention of the applicable rules can not be ruled out.

CA HANI

CA HANI (Querist)

16 September 2009 Thanks Mr. Naik , what is the quantum of penalty if payment is made by a cheques with overdue interest if any is there ?

Shyam Lal Naik

Shyam Lal Naik (Expert)

17 September 2009 It may extend to Rs. 5000/-Ref : Sec 77(d)

I can not comment, whether the penalty will be applicabe for each default(ie. for each challan made manually)

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