M A N D A T O R Y E-PAYMENT FOR MAJOR ASSESSEES

The e-payment of service tax has been made mandatory w.e.f. 1.10.2006, for all assesses who have paid Rs 50 lakh or more in the preceding financial year or in the current financial year. The interpretation of qualifying amount of service tax of Rs 50 lakh paid by the assessee are:

• For a person providing or receiving taxable service from more than one premises, where each one of them has been separately registered for payment of service tax, the criterion of Rs 50 lakh would apply to each registered premises individually. However, in case of a Large Taxpayer (LTU), the cumulative service tax paid by all registered premises of such LTU will be taken into account.
• In case of single registered premises, service tax paid on taxable service provided from and received in such registered premises would be taken into account.
• For the purposes of calculation of Rs 50 lakh the total service tax paid by cash plus CENVAT credit would be taken into account as service tax paid amount.