E-payment of Service Tax – who is liable?
Is the 50 Lakh limit for cash payment or does it include credit?
As if the confusion about banks not being ready is not enough, there is a new confusion. Who is required to make e payments? As per the Proviso to Rule 6(2),
“Provided that the assessee, who has paid service tax of rupees fifty lakh or above in the preceding financial year or has already paid service tax of rupees fifty lakh in the current financial year, shall deposit the service tax liable to be paid by him electronically, through internet banking.”
Now what is the Rs. 50 Lakhs? Is it the amount paid by cash or does it include payment made through cenvat credit? The obvious answer is it covers only payment by cash but where is it said so?, an indirect taxes expert working with a top MNC consultancy firm asked me while he was on his way to a presentation on e-payment.