Tax payers in Delhi and NCR can now pay service tax online, saving on time and effort, as the government today launched the automated system-- ACES--for the purpose.

The Automation of Central Excise and Taxes (ACES), a centralised, web-based software application of the Central Board Excise and Customs (CBEC), was introduced today for taxpayers in Delhi, Faridabad and Gurgaon.

"The main objective of ACES is to provide an electronic interface with the department that aims to reduce paperwork, visits to the department, transaction costs for the government," Delhi Commissioner for Service Tax R D Negi said.

It aims to increase the accountability, efficiency, responsiveness and transparency in the indirect administration, he added.

The system is already in use in several cities like Bengaluru, Chennai, Coimbatore, Belapur and Bhubhaneshwar-, Hyderabad and Ahmedabad. To spread awareness about the system, CBEC has also tied up with institutions like ICAI and ICWAI.

The revenue of Delhi Service Tax Commissionerate has increased from Rs 1,000 crore five years ago to Rs 10,000 crore in 2008-09 and ACES is expected to facilitate the services sector.

The system will also accept documents bearing digital signatures though the facility is not be available now.