Electronic payment of Service Tax – what’s the status?
Service Tax payable on 5th October was to be paid electronically in the banks. The banks, the department and the assessees were totally ignorant about the procedure. Many banks simply refused to open accounts, as they were all busy with half-yearly closure of accounts. Frantic calls to the department on whether this month’s tax could be paid manually were received with evasive replies and ‘personal opinions’. Several assessees were worried that if they pay by challan in the bank, the department will issue notices later alleging fraud, suppression and evasion that taxes were not paid in the manner it was required to be paid. Just imagine if the CBEC was entrusted to run a new train. All passengers will be mandatorily required to buy tickets through a web site that does not exist. The station master will send a compliance report that the train is running successfully.