e-payment of Service Tax – we are as ignorant as you are.

By Vijay Kumar

Our Netizen reporters – assessees report for TIOL

We asked some of our netizens who are also Service Tax assessees to report to us after ascertaining from Service Tax officers and banks on how to go about e-payment of Service Tax.

Here’s what they reported:-

Bangalore:

An assessee called up a Joint Commissioner, Service Tax in Bangalore to find out the procedure of paying Service Tax electronically. “ we are as ignorant as you are.”, said the honest Joint Commissioner. Of course he was kind enough to clarify that it was a banking procedure and the banks should be able to give better information. The assessee also called up the PRO who said,” first you have to register with the bank, the bank will give you an user ID and password. There would be no extra charges for availing this facility. Rest the bank will explain. He also gave the banks which would be giving this service in Bangalore: SBI, Syndicate Bank, UTI, SBM, Corporation Bank, Vijaya Bank, Canara Bank, HDFC Bank

Chennai:

A Superintendent told our amateur reporter that he would need a PAN card and a PAN Based Common ID and a current account in a bank which is providing the service. He also said that in today’s issue of Indian Express they have published an ad for the same. He said that the rest of the details are available in trade notice number (ST) 10/2006 dated 10th August 2006. He said that all these information is available in http://Centralexcisechennai.gov.in. Our assessee reporter who was enjoying the new role crosschecked the web site and found that the trade notice was not there in the site. He informed the Superintendent about this and the Superintendent informed that it would be uploaded in half an hour. He however explained the procedure. The assessee checked the web site after an hour and the trade notice was indeed uploaded.

Ahmedabad:

Here our assessee talked to the Commissioner who told him that he had to pay through internet only if he had a Service Tax of over Rs. 50 Lakhs. She said that details could be had only from the banks. She added that in Ahmedabad, SBI and Bank of Baroda are giving this service.

Mumbai

Our Mumbai assessee spoke to a Superintendent who had a fund of information.

++ the details are there in PNB bank’s site. Our reporter did not find it.

++ Presently the services need to be connected through the IC gateway and then only the department will have proper records.

++ I don’t know much about the service

++The infrastructure with the department is not in place and it will take another 8-10 days time to do so.

Delhi:

This is what the assessee told us,

“I called up Delhi ST but in the commissioner's office, the lady asked me to call to the technical department. She gave me the number xxxxx and contact Mr.xxxxxxxx In this number no one responded the call (from 12:30 pm till 4 pm I tried every half an hour.0 Later I also tried one JC number but he was not in the office and his PA told me to call after an hour or so.

How did the banks respond?

Our reporters also contacted some of the banks and this is what we learnt.

Bank of Baroda, BhikajiCamma Place branch in New Delhi

A lady officer informed that they have received the software for the services (50 lakh criteria). However the employees need to be trained for the same and the software need to be installed. She further said that because of the process of half yearly closing, they are not able to do much about it. And probably only after the half yearly closing they will install the software and train the employees about it. She also added that a ‘Dry Run’ of the software would be done and then only BoB would go for a full-fledged service. All this process will take not less than 10-15 days.

Parliament Street Branch

Our reporter spoke to the Chief Manager who said that the software needs to be loaded. It will take another week or so to implement the whole process. He added that after the software is in place all the 400-500 branches having the core banking facility could give the services.

State Bank Of India – the well informed bank.

The most positive and accurate information came from the SBI. Its GM, government business, Mishra told our assessee reporter that the facility of e-payment of Service tax was always there. The only difference now (after October 1st) is that it is now mandatory for those who pay more than Rs. 50 Lakhs. Even others can pay through the net. He said that the assessee has to feed in his 15 digit assess code provided by CBEC and the master record would automatically fill up the form and the assessee will have to add just a few fields. MrMishra added that if any one needs information about electronic format of taxation through SBI then they just need to send a mail toetax@sbi.co.in and in reply an automated response would come to the sender, which will have all the information (including service tax e-filing).

Our reporter tried the mail and within seconds he got a response.

Thank you, Mr. Mishra! There is at least one officer who is aware of what this is all about. Why are we not mentioning any other names? Obviously to protect the guilty!

Should CBEC rush into e payment with such pathetic levels of ignorance?

We asked the assessees who contacted the department on the procedure whether they would be paying Service Tax through the net in October. Not one of them replied in the affirmative. “I would rather pay interest rather than get my money blocked in this confusion”, was the unanimous opinion.

Incidentally are the banks liable to pay Service Tax for collecting tax on behalf of the government?