Payment of Service Tax

[JANARDHAN BUDDHATHI]

HI,

Our Service tax laibility for the preceding financial year is NIL but in current financial year our laibility exceeding Rs.10 lacs. But in advertantly we have discharged our laibility by issuing cheque instead of e payment.

Can you please suggest What are imlications inthis regard. Is there any way to avoid those implications.

Notification clealy says that e payment is mandatory if liability in preceding financial year excedding Rs.10lacs. But how we can understand it is for current f.y.also.

Thanks

 

[YAGAY andSUN]

Department may impose penalty of Rs. 5000/- on non compliance of this provision.

[rajkumar shukla]

Before the limit was lowered for E payment from 50 lakhs to 10 lakhs w.e.f. 01.4.2010. the limit percribed for Epayment (50 lakhs) was meant for payments made in preceding financial year as well as current financial year.however W.E,F 01.4.2010 it is limited only for preceding fincial year, and not for current financial year.

[JANARDHAN BUDDHATHI]

Thank  you very much. But  still  there are different views. whether notification applies for current f.y. also. Can we interprete it applies to curret f.y. as in the notification clearly mentioned for preceding financial year.

AI Summary

E-payment requirement for service tax may trigger penalty for non-compliance when prior-year liabilities exceed threshold. Whether mandatory e-payment for service tax is triggered by liability in the preceding financial year, not the current year; non-compliance may attract a fixed penalty, and an amendment narrowed the temporal reference to the preceding financial year, creating interpretive uncertainty about application where current-year liability rises but the prior year was below the threshold.