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How to Pay Service Tax and Central Excise Duty Online

How to Pay Service Tax and Central Excise Duty Online. In the previous article, we have given  Income Tax Return Filing | Frequently asked questions and What is TDS or Tax Deducted at Source | Complete Details. Today we are providing the details of the procedure to pay central excise duty and service tax online and some frequently asked questions like What will happen after I confirm the payment of tax at my Bank’s site?. Read below

How to Pay Service Tax and Central Excise Duty Online

How to Pay Service Tax and Central Excise Duty Online

1. To pay Excise Duty and Service Tax online, the Assessee has to enter the 15 digit Assessee Code allotted by the jurisdictional Commissionerate.

2. There will be an online check on the validity of the Assessee Code entered.

3. If the Assessee code is valid, then corresponding Assessee details like Name, Address, Commissionerate code etc. as present in the Assessee Code Master will be displayed.

4. Based on the Assessee Code, the Duty / Tax i.e. Excise Duty or Service Tax to be paid will be automatically selected.

5. The Assessee is required to select the Type of Duty / Tax to be paid by clicking on Select Accounting Codes for Excise or Select Accounting Codes for Service Tax depending on the type of Duty / Tax to be paid.

6. At a time, Assessee can select upto six Accounting Codes.

7. The Assessee should also select the Bank through which payment is to be made.

8. On submission of data entered, a confirmation screen will be displayed. If the taxpayer confirms the data entered in the screen, it will be directed to the net-Banking site of the Bank selected.

9. The taxpayer will login to the net-Banking site with the user ID/ password provided by the Bank for net-Banking purpose and enter payment details at the Bank site.

10. On successful payment, a challan counterfoil will be displayed containing CIN, payment details and Bank name through which e-Payment has been made. This counterfoil is proof of payment being made.

FAQ on Procedure to Pay Service Tax and Central Excise Duty Online

Here we are providing 18 Frequently Asked Questions on Procedure to Pay Service Tax and Central Excise Duty Online. Read below.

01. What is e-Payment of taxes?

This is a facility provided to the Assessee to make Central Excise Duty or Service Tax payments through internet, using net-Banking facility.

02. How can I use this facility to pay Central Excise Duty or Service Tax?

You can use the facility if –

  • You have a Bank account with net-Banking facility, and
  • Your Bank is amongst the Banks that provide the e- Payment facility.

03. Whether it is mandatory to pay tax online?

With effect from 1st October 2014, every Assessee shall electronically pay the Service Tax / Central Excise Duty payable by him, through internet banking vide notification 9/2014-ST and 19/2014-CE (NT) dated 11.07.2014 respectively.

04. How do I know whether my Bank provides this facility?

The list of Banks providing this facility is available on the NSDL-CBEC website. Alternatively you may get the information from your Bank.

05. What is the procedure for entering the required data on the screen for paying tax online?

Follow the steps as under to pay tax online:-

Step 1

  • Log on to NSDL-CBEC site website (cbec-easiest.gov.in)
  • Click on the menu e-Payment
  • Enter 15-digit valid Assessee Code
  • Select the respective type of Duty / Tax (accounting code)
  • Select the Bank name from the drop down provided
  • After entering all the above detail, click on PROCEED button

Step 2

  • You can now verify the details entered by you. Click on EDIT in case of rectification
  • Click on SUBMIT to the Bank button. You will be directed to the net-Banking site provided by your Bank

06. What is the procedure after being directed to the net-Banking site of the Bank?

The system will direct you to net-Banking facility of your Bank. You will have to log on to the net-Banking site of your Bank using your login ID and password/PIN provided by the Bank. The particulars entered by you at NSDL-CBEC website will be displayed again.

You will now be required to enter the amount of tax you intend to pay for each accounting code selected and also select your Bank account number from where you intend to pay the tax. After verifying the correctness, you can proceed with confirming the payment.

07. What will happen after I confirm the payment of tax at my Bank’s site?

Your Bank will process the transaction online by debiting the Bank account indicated by you and generate a printable acknowledgment indicating the Challan Identification Number (CIN). You can verify the status of the challan in the Challan Status Inquiry at NSDL-CBEC website using CIN after a week, after making payment.

08. How can I know that I have completed tax payment using this facility?

Apart from CIN given to you, you can check your online Bank statement to verify the tax payment.

09. What is the timing for making payment through internet?

You will have to check the net-Banking webpage of your Bank’s website for this information.

10. If I encounter any problem while making payment through internet whom should I contact?

If any problem encountered at the NSDL-CBEC website while entering non-financial data then write to us at [email protected] The subject should indicate ‘Online Payment of Indirect Tax’.

If any problem encountered while entering the financial details at the net-Banking webpage of your Bank, then you should contact your Bank for assistance.

11. Where should I make enquiries about my tax payments through internet?

You should contact your Bank for queries about your payment transaction through internet.

12. Whom should I contact if the counterfoil containing the CIN is not displayed on completion of the transaction and if I want duplicate counterfoil?

Your Bank provides facility for re-generation of electronic challan counterfoil kindly check the Bank website, if not then you should contact your Bank, request them for duplicate challan counterfoil.

13. If I have misplaced my counterfoil whom do I contact?

Your Bank provides facility for re-generation of electronic challan counterfoil kindly check the Bank website; if not then you should contact your Bank and request them for duplicate challan counterfoil.

14. After making e-Payment of Excise or Service tax if status of challan is not available under Challan Status Enquiry on NSDL-CBEC site, what should I do?

You can verify the status of the challan in the “Challan Status Inquiry” at NSDL-CBEC website after 5 to 7 days of making e-Payment. In case of non availability of the challan status kindly contact your Bank.

15. If I encountered any error on CBEC site while making e-Payment what should I do?

If encountered any error on e-tax website kindly write to us at [email protected] The subject should indicate ‘Online Payment of Indirect Tax’.

16. Account get debited more than once for the same e-tax transaction what should I do?

If during the transaction or after completing the transaction Bank site encountered any error or get disconnected before generating Taxpayer counterfoil then instead of doing the same transaction again kindly check your account, if account is being debited then contact your Bank for regeneration of taxpayer counterfoil . Please note in the above case do not make the same transaction again which will result in account being debited more than once for same e-tax transaction.

17. How secure is the transmission of data to the website for e- Payment?

All transmission through NSDL-CBEC website is encrypted and is with Secure Socket Layer (SSL) authentication. With respect to the Banks, it depends on the security measures provided by the Bank for net-Banking.

18. How does this system of payment of taxes through internet benefit me as a taxpayer?

This system is beneficial to you as you are not required to personally visit the Bank to make the payments. Payment can be made electronically at your convenience from any place where an internet facility is available e.g. your office, residence, etc. Further, you get the Challan Identification Number (CIN) online, which is required by you when you file your return.

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