Payment of Tax can be made with Old Currency
THE Central Government has decided that up to 30.12.2016, the payment towards tax, surcharge, penalty and deposit under the Pradhan Mantri Garib Kalyan Yojana (PMGKY), can be made in Old Bank Notes of Rs. 500 and Rs.1,000 denomination issued by the RBI.
What is this tax? Does it include Service Tax and Central Excise?
As per Rule 6(2) of the Service Tax Rules,
(2) Every assessee shall electronically pay the service tax payable by him, through internet banking:
Provided that the Assistant Commissioner or the Deputy Commissioner of Central Excise, as the case may be, having jurisdiction, may for reasons to be recorded in writing, allow the assessee to deposit the service tax by any mode other than internet banking .
As per Rule 8(1B) of the Central Excise Rules,
Every assessee shall electronically pay duty through internet banking:
Provided that the Assistant Commissioner or the Deputy Commissioner of Central Excise, for reasons to be recorded in writing, allow an assessee payment of duty by any mode other than internet banking .
As per Notification No. dated 17.09.2012, Importers paying customs duty of one lakh rupees or more per bill of entry shall pay customs duty electronically .
So, perhaps the government's decision to allow payment of taxes with old currency notes does not apply to Customs, Excise and Service Tax. Or maybe the Assistant Commissioner can permit cash payment for Excise and Service Tax. But time is running out - the scheme ends next Friday.