Mandatory payment of service tax electronically for major assessees – Reg. - Service Tax - V/DGST/30-Misc-27/e-payment/2006

D.O.F.NO: V/DGST/30-Misc-27/e-payment/2006 Dated: 6th/7 July 2006 S.S.RENJHEN DIRECTOR GENERAL Subject: Mandatory payment of service tax electronically for major assessees - Reg. My dear Considering that the payment and collection of taxes electronically is admittedly an efficient and cost effective way of collection of taxes, the Board has decided that with effect from 1st October, 2006, payment of service tax electronically shall be mandatory for those persons who are required to pay services tax and paid more than Rs.50 lakhs in the preceding Financial year or paid more than Rs.50 lakhs during the current financial year. 2. At present 23 nominated banks are providing the facility of a payment of taxes and 5 more banks have already committed to extend this facility shortly. 3. The officers of the field formations and assessees under your charge may be suitably informed of this mandatory requirement. Please ensure that the proposed facility is implemented smoothy. The Commissioners may also be advised to encourage other assessee, who do not fall within this category, to pay the service tax electronically. 4. The Principal Chief Controller of Accounts has been requested by the Board to coordinate with the field formations and sort out any specific local issues arising due to the implementation of the said proposal. 5. If there are any suggestions or any action needs to be taken at the Board's level, the same may please be communicated to this Directorate within 15 days. With regards, Yours sincerely, (G.S.RENJHEN)