Digital mode of payment while making financial transantions-past assessments - Service Tax - F. No. 137/ 155 /2012-Service Tax( Part-I)

F. No. 137/ 155 /2012-Service Tax( Part-I) Government of India Ministry of Finance Department of Revenue Central Board of Excise and Customs Service Tax Wing New Delhi, the 9 th December , 2016 To All Principal Chief Commissioners / Chief Commissioners of Central Excise/Service Tax Principal Directors General/ Director General Goods and Service Tax/ Central Excise Intelligence/Systems/ Audit/ / Tax Payer Services/Performance Management Chief Commissioner AR CESTAT All Principal Commissioners/Commissioners of Central Excise/Service Tax All Principal Additional Directors General/ Additional Directors General Audit Madam/Sir, Recent initiatives of the government to curb black economy in the country encourage people to shift towards digital mode of payment while making financial transactions. By adopting a digital mode of payment, no financial transaction would remain undisclosed and consequently an enhanced turnover might get reflected in the books of accounts. Under the circumstances an apprehension has been raised that increased turnover on account of use of digital means of payment may lead to demands for the earlier period. It is hereby clarified that in indirect taxes, past assessments will not be reopened for this reason alone. Yours faithfully Dr. Gaurav Mittal (Officer on Special Duty)