E-payment Procedure
[E-payment of Service Tax] 

Electronic payment which is also popularly known as E-payment is an additional mode of paying Service Tax to the Government apart from the conventional methods offered by the banks to their customers.

This scheme facilitates assessee by using the concept of “anytime anywhere” i.e. to say the payment of tax can be made by any assessee who may be outside location which may not be nearer to his Bank(Branch), payment can be made through this facility even after normal banking  hours. Such flexibility was not available in conventional method of Tax Payment.

If any problem is faced by the assessee at the time of E-payment through Net Banking than assessee can contact jurisdictional service tax/central excise office or the jurisdictional Commissioner,omega replica who would advise about how to comply with requirements of mandatory e-payment.

Mandatory nature in certain cases

E-Tax Payment is made Mandatory w.e.f. from 19-02-2010 for the assessee who has “paid” Service Tax of Rs. 10 Lakh or more in the current financial year or the previous financial year. Here for considering limit of Rs. 10 Lakh “paid” includes payment through CASH as well as CENVAT Credit. (Service Tax Notification No. 01/2010 – Service Tax dated the 19th February,2010)

Certain doubts have also been raised as regards the interpretation of qualifying amount of Service Tax of Rs 10 lakh paid by the assessee,
More than one premises :- For a person providing taxable service from more than one premises, where each such premises is separately registered with the department for payment of Service Tax, the criterion of Rs 10 lakh would apply to each registered premises individually, as each registered premises is separately an assessee in terms of law.
Person is paying Service Tax for both Providing as well as receiving taxable service :- If a person pays Service Tax from a registered premises for both the taxable services provided by him and the taxable service received by him on which he is liable to pay Service Tax, the cumulative Service Tax paid, i.e., Service Tax paid on taxable service provided from and Service Tax paid on taxable service received in such registered premises would be taken into account for the purposes of satisfaction of criterion of payment of Service Tax amount of Rs 10 lakh.  E.g. A person providing taxable service as well as receiving Goods Transport Agency(GTA)  Services  then for considering Rs. 10 Lakh criterion total of taxable services provided as well as GTA services received should be considered. 

Advantages of E-Payment :
Ease of operation and convenience.

Facility is available 24x7.

No queue and waiting. i.e. Less time consuming and also reduces paper work.

On line filling of single challan.

Minimum fields of the challan need to be filled. Most of the fields are populated automatically.

Selection of tax type is from drop-down menu.

Instant Cyber receipt with banks transaction number becomes available.

The acknowledgement of the challan gets delivered at the customer’s address.
Time of Payment :

This is a 24x7 facility. It is operated through a system known as OLTAS (On Line Tax Assessment System)

All payments effected up to 8 p.m. will be accounted for the day as that day’s receipt.

Payments effected after 8 p.m. will be accounted as the next working day’s receipt.
Due date for payment :

In case of Individuals, proprietary firms or partnership firms, quarterly E-Payment of Service Tax is to be made and due date for such payment is 6th of the month immediately following the said quarter, but in the quarter of January to march due date would be 31st of March.

In case of others, monthly E-Payment of Service Tax is to be made and due date for such payment is 6th of the month immediately following best replica watches the said  month, but for the month of March the due date would be 31st March..

The procedure of E-payment :

For taxpayers who opt to maintain account with the concerned bank and willing to use Internet banking facility: 

1.  Taxpayer logs on to the bank’s web site.

2.  The bank’s site allows the taxpayer to enter into the secure banking area after verifying the user ID and password provided to the taxpayer by the bank;

3.  Once in the secure banking area of the bank, the tax payer can select the “Pay Tax” menu which will further offer option to select various taxes he can pay on-line;

4.  Once opted for CBEC (Indirect Tax), the taxpayer is guided to the challan form for filling up the details;

5.  There will be an on-line validation for Assessee Code, Location Code, Account Head against the masters provided to the bank from the concerned Pay and Accounts Office.  The validation is mandatory and only successful entrants will be allowed to proceed further;

6.  Banks will obtain and keep only such Assessee Codes, in their master, which belongs to the assessee who falls under the Commissionerates for which the bank is authorized to collect Indirect Tax revenue.  This will ensure that the bank is not collecting and accounting indirect tax revenue for a Commissionerate for which it is not authorized;

7.  On successful validation of the details in the challan format, the taxpayer is guided to a ‘make payment screen’ showing the payment details filled in by the taxpayer on the challan format;

8.  The taxpayer gets an option to “Continue” or “Cancel”;

9.  On selecting “Cancel”, the taxpayer is prompt for entering his user ID and password to enter into the bank’s e-transaction module;

10. On selecting “continue”, the taxpayer is prompt for entering his user ID and password to enter into the bank’s transaction module;

11. This screen further leads the taxpayer to the page describing his account details with the bank;

12. Taxpayer selects the account to be debited;

13. Authorise the payment transaction;

14. On successful payment transaction, the account of the taxpayer gets debited and taxpayer gets a unique system generated payment confirmation number;

15. The concerned Focal Point Bank prints the challan and include in the scroll on a day to day basis and forward to the concerned PAO and, to the Range Officer as per the existing procedure and ensures two copies of the challan in delivered to the taxpayer;

16. Fund transaction and settlement with Government will be the exclusive responsibility of the bank as per the existing procedure.

To avail this facility, the taxpayer has to get registered with the bank authorized for the respective Commissionerate and offering net banking e-payment solution.

The list of 28 Banks authorised to collect Service Tax electronically:

1 Allahabad Bank 15 Oriental Bank of Commerce
2 Axis Bank 16 Punjab National bank
3 Bank of Baroda 17 State Bank of Bikaner & Jaipur
4 Bank of India 18 State Bank of Hyderabad
5 Bank of Maharashtra 19 State Bank of India
6 Canara Bank 20 State Bank of Mysore
7 Central Bank of India 21 State Bank of Patiala
8 Corporation Bank 22 State Bank of Travancore
9 Dena Bank 23 Syndicate Bank
10 HDFC Bank 24 UCO Bank
11 ICICI Bank 25 Union Bank of India
12 IDBI Bank 26 United Bank of India
13 Indian Bank 27 Vijaya Bank
14 Indian Overseas Bank    
Note:  Excise or Service Tax payment done through ICICI Bank , HDFC Bank and Axis Bank can be done by assesses for select Commissionerates only. For all other banks authorized for collection of excise duty or Service Tax payment can be made for all Commissionerates.   

List of Commissionerates for which payment can be made through ICICI Bank, HDFC Bank and Axis Bank is as under:

Location Commissionerate for which payment can be done
Delhi 04, 81, 51, 50
Mumbai 02, 29, 31, 40, 41, 42, 43, 88, 89
Bangalore  9, 44, 45
Calcutta 16, 34, 47, 48, 67, 68, 69, 70


Axis Bank
Location Commissionerate for which payment can be done
Delhi SE
Mumbai SC, 43
Bangalore SA
Hyderabad 08, 52, 53, 92



Commissionerate for which payment can be done

Delhi SE
Chennai  SF




Case Laws Related

  • STO 2012 CESTAT 956
  • Cenvat credit: Excess credit utilized: Resulting into short payment of service tax: Subsequently service tax and interest paid in cash: No need to issue show cause notice in terms of section 73(3): Penalties set aside.

  • STO 2012 CESTAT 788
  • Payment of Tax: By depositing the tax through Cenvat credit, the appellant cannot be called upon once again to deposit the amount in cash.

    Date: 17-06-2019