when is the due date for payment of excise if due date falls on public holiday.

[Ramakrishnan Seshadri]

Dear Sir,

We are paying the excise duty and service tax through epayment.This month continuously the banks were closed and difficult to pay the duty on due date which falls on monday a public holiday.

I kindly request someone to guide me whether we can pay the excise duty and service tax on 7th the next working day.

If we pay on 7th whether the department will object and request us to pay interest for the delayed one day.

Awaiting reply.

Regards,

S.Ramakrishnan.

[YAGAY andSUN]

Dear Ramakrishnan,

According to the provisions of General Clause Act read with Limitation Act, Returns and Statutory Dues can be submitted/paid (as the case may be) on the very next working day if there is holiday on due day/date. But after the very inception of e-payment. such provisions (benefits of payments of taxes or submissions of returns on very next working day is deemed as diluted) and overlapped. You are very right in anticipation that Department may raise objection and ask for interest for delay in making payment of taxes for even one day.

This aspect needs to be clarified from/by the CBEC. However, CBDT has extended due date for deposition of the tax from 7th to 10th of October, 2014.

Regards,

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

[Mahir S]

As duty payment can now be made online through internet banking, therefore question of non payment due to closure of banks does not arise. I

f you are paying duty on 7th, then better pay it with interest thereon.

Interestingly, you can also pay duty tomorrow as banks are working on 4th Oct,

AI Summary

Payment due date on public holiday: taxes should be paid next working day but interest may be charged for delay. Traditionally, the General Clauses Act and Limitation Act permit payment of excise or service tax on the next working day when the due date falls on a public holiday; however, mandatory e-payment regimes mean bank closures are not generally an excuse and authorities may treat next-day payments as delayed and levy interest. Taxpayers are advised to use online payment channels where possible, and if paying on the next working day, to pay with interest to minimise disputes, pending formal clarification from the tax administration.