Service tax e payment

Sir,

I want to know  if a compay having more than 1 sister concern

having seperate service tax numbers and  paid total service tax  inclusive

of cenvat credit exceeds Rs.10 lac,(ser.tax for all 3 concerns), is it compulsory

to make epayment of service tax or enough to issue cheques.

mala

 

Replies (3)

1st October, 2006, payment of service tax electronically shall be mandatory for those persons who are required to pay services tax and paid more than Rs.50 lakhs in the preceding Financial year or paid more than Rs.50 lakhs during the current financial year. So in ur case the service tax limit doesnt exceeds Rs50lacs. So u can make payment through cheques.

Dear All,

 

I am agree with Anjali.

Kindly find herewith the extract of Proviso to Rule6(2) of Service Tax Rules, 1994 for your perusal.

“(2) The assessee shall deposit the service tax liable to be paid by him with the bank designated by the Central Board of Excise and Customs for this purpose in Form TR-6 or in any other manner prescribed by the Central Board of Excise and Customs. 1[Provided that where an assessee has paid a total service tax of rupees ten lakh or more including the amount paid by utilization of CENVAT credit, in the preceding financial year, he shall deposit the service tax liable to be paid by him electronically, through internet banking.]”

The above proviso is amended with effect from 1-04-2010. Earlier the limit for mandatory e-payment was Rs 50 Lakhs instead of Rs 10 Lakhs.

Further if company and sister concern has obtained a seperate STR no., then the limit shall be calculated independently i.e. entity wise not combined.

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