After the launch of the e-filing process for income tax returns, it is now the turn of excise and service tax departments.
The finance ministry has made it mandatory for all assessees paying excise and service tax of Rs 50 lakh and above, to pay the tax electronically in the 2007-08 fiscal. Service tax officials said that the ministry on Wednesday, launched the Electronic Accounting System in Excise and Service Tax (Easiest).
The electronic method of filing tax and returns is the most convenient method for the payment of excise and service taxes, said the official. He also noted that the finance ministry would eventually make e-payment mandatory for the filing of all taxes and returns.
The Central Board of Excise and Customs (CBEC) has appealed to businessmen to pay their tax dues on time and to avoid any punitive action against them by the department.
The new scheme, Easiest, has been introduced by the CBEC in association with the principal chief controller of accounts, the Reserve Bank of India and 28 scheduled banks. The scheme will address the drawbacks or flaws in the already existing accounting system. As per the existing system, the tax payer has to manually file four copies of the same challan.
However, with the Easiest system, the tax payer would be required to only fill a single challan for the payment of Central excise and service tax. Another official noted that Easiest used the electronic environment for expeditious transmission of tax information to ensure greater accuracy and reliability of tax payment data.