Service Tax — Payment by cheque not to be treated as discharge of duty unless the cheque is encashed - Service Tax - 72/2001(S. Tax No. 3/2001),

Service Tax — Payment by cheque not to be treated as discharge of duty unless the cheque is encashed Trade Notice No. 72/2001(S. Tax No. 3/2001), dated 30-7-2001 of the Cochin Commissionate Subject : Service Tax - Payment of Service Tax by cheque in authorized banks - Consequences of delay in encashment beyond due date - It has been clarified by the Central Board of Excise Customs, New Delhi under it's letter F. No. 137/10/2000-CX. 4, dated 10-6-2001 that as per RBI instruction, when the payment is made either in cash or by the demand draft, the immediate credit has to be taken. When a cheque is tendered, the money still remains on assessee's account and is not transferred to the Bank. When the cheque is cleared by clearing house of the Bank, the money gets deposited in the Bank. Till the date of clearance the money is not credited to the designated Bank. i.e., the money is not credited to the Government of India account as provided under Rule 6 of Service Tax Rules. In view of this, the payment of duty by cheque may not be treated as discharge of duty by due date unless the cheque is encashed and the amount is credited in the account of Government of India. 2. Trade Associations and Organisations are requested to circulate the contents of this Trade Notice among their members. 3. Trade Notice No. 104/2000 (ST), dated 21-9-2000 is hereby with- drawn.