OFFICE OF THE COMMISSIONER OF CENTRAL EXCISE & CUSTOMS ; CIVIL LINES NAGPUR

 C.No.IV(16)30-23 /2006/ST/HQ                          Nagpur,dtd. 27/9/2006

TRADE NOTICE NO .784/17/2006/ST

SERVICE TAX DADTED 18/9/2006

Subject :- Mandatory payment of Service Tax electronically for major

                                          assessees –reg.

                                            ………

                The Finance Ministry , Central Board of Excise & Customs has made it compulsory for the service Tax assessee who paid the revenue of 50 lakhs in the last year / this year to pay Service Tax electronically popularly called E-payment with effect from 1/10/06.  The main advantages to the Service Tax payer with this facility are as follows :-

 i)                    Ease of operation and convenience.

ii)                   Availability of facility is on 24 x 7 basis.

iii)                 On-line filing of challan and payment of taxes(no more queues and waiting)

iv)                 Instant Cyber Receipt of payment made.

v)                  Challan delivered at doorstep and

vi)                 Service is free of charge.

             For availing  facility of E-Payment  of Service Tax the tax payer has to get registered with the following banks authorized for receipt of Service Tax.

 An information flow chart on E-Payment solution is given below for information. 

STEPS FOR MAKING E-PAYMENT BY THE SERVICE TAX PAYER

 “ Taxpayers have to maintain account with the concerned bank to use internet banking facility

The tax payer also should register with  the bank opting for making tax payments through e-payment mode.

The Tax payer will be provided with a user ID and a password will be provided by the Bank. Taxpayers logs on the banks website.

The bank’s site allows the taxpayer to enter into the secure banking area after verifying the user ID and password entered by the taxpayer.

Once in the secure banking area of the bank, the taxpayer can select the ‘Pay Tax’ menu which will further offer option to select various taxes he can pay online.

Once opted for CBEC (Indirect Tax), the taxpayer is guided to the challan form for filling up the details .

There will be an online validation for assessee code, Location Code,  Account Head against the masters provided to the bank from the concerned pay and account office.  The validation is mandatory and only successful entrants will be allowed to proceed further.

Banks will obtain and keep only such assessee code, in their master, which belongs to the assessee who falls  under the Commissionerates for which the bank is authorized

to collect indirect tax revenue.  This will ensure that the bank is not collecting and accounting indirect tax revenue for a Commissionerate for which it is not authorized taxpayer logs on the bank’s website.

On successful validation of the details in the challan format, taxpayer is guided to a ‘make payment screen’ showing the payment details filed in by the taxpayer on the challan format.

The taxpayer gets an option to ‘Continue or Cancel’

On selecting” cancel” , the taxpayer goes back to the banks main web-pages

On selecting “Continue “, the taxpayer is prompted for entering his user ID and password to enter into the bank’s transaction module :

This screen further leads the taxpayer to the page describing his account details with the bank;

Taxpayer selects the account to be debited ;

Authorize the payment transaction”

On successful payment transaction, the account of the taxpayers gets debited and taxpayers get a unique system generated payment confirmation number ;

The concerned Focal Point Bank prints the challan and include in the scroll on a day to day basis and forward to the concerned PAO and to the Range Officer as per the existing procedure and ensures two copies of the challan are delivered to the taxpayer.

Fund transaction and settlement with government will be the exclusive responsibility of the bank as per the existing procedure.

This is a 24 x 7 facility and as such, customers can make the payment anytime of the day.

All payments effected upto 8 p.m. will be accounted for the day itself and all payment effected after 8 pm shall be accounted as next working days receipt

This facility is available to Service Tax  assesses registered with Service Tax department and for the Commissionerate for which the bank is authorized to collect indirect tax revenue.

              All Trade Association/Chamber of Commerce and the Member of RAC are requested to bring this to the notice of their members/constituents.  

                                                                    (V.S.KUMBHARE)

                                                                      ASSISTANT COMMISSIONER(S.T)

                                                                       CENTRAL EXCISE ; HQRS; NAGPUR

 Authority :

F.No.V/DGST/30-Misc-27/e-payment/2006/2111 dated 28/7/2006. issued by  Additional Director ,  DGST , Service Tax, Mumbai.

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