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
Confusion over service tax e-payment rules: Does the Rs. 10 lakh threshold apply to current or past financial year? A user inquired about the implications of paying service tax via cheque instead of mandatory e-payment, as their liability exceeded Rs. 10 lakhs in the current financial year, despite having no liability the previous year. One respondent noted that a penalty of Rs. 5,000 might apply for non-compliance. Another clarified that the e-payment requirement, effective from April 1, 2010, applies to liabilities from the preceding financial year, not the current one. The original poster expressed confusion over differing interpretations of whether the notification applies to the current financial year. (AI Summary)
TaxTMI 
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