E payment of service tax

Dear All,

What are the implications if the payment of service tax is not made through internet banking altough it was mandatory for the concerned party?

Replies (3)

I dont think there will be any penalty.

Banks these days do not accent payment of Service Tax via challans and hence you have to make online payment only, if they accept then no penalty.

Where the assessee fails to pay tax electronically, through internet banking when he is liable to pay tax electronically, shall be liable to a penalty of any amount up to Rs. 10,000/- w.e.f. 08.04.2011.

-- Sec. 77(1)(d) of the Finance Act, 1994.

the penalty may be levied upto 10,000 (maximum) so kindly ensure that the payment is made by way of electronic means else there shall be levied a penalty as per sec 77 (1) (d) which for no cause is hardship for the assesse. However always there is a chance of litigation since trhere is no malafide intention of the assesse in making payment manually.

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