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e-payment of service tax mandatory for big assessees
September, 25th 2006
All assessees who have paid Rs 50 lakh or more as service tax during the preceding financial year or whose payment of service tax exceeded Rs 50 lakh during the current financial year, are required to pay service tax electronically with effect from October 1. A notification was issued on Thursday. According to an official release, field officers and banks have been advised to contact the service tax assessees and extend all necessary assistance to make the transition smooth and successful. Service tax commissionerates have also been organising interactive programmes, for the benefit of the assessees, in coordination with the bankers and the officers of the Principal Chief Controller of Accounts, the release said. In consonance with its policy to increasingly use information technology to improve the operational efficiency of collection of taxes and to reduce the transaction cost, the government has made electronic mode of payment of service tax obligatory for high value service tax payers, the release said.
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