New Delhi, Nov 27 (KNN)  A manufacturer or a service tax payer who has paid excise duty or tax of more than Rupees one lakh in the previous financial year will be required to make tax payment through internet banking.

“This step has been taken as measure of trade facilitation and it is expected that increased coverage of e-payment would make it convenient for the trade to pay taxes electronically,” a release from the Central Board of Customs and Excise said today.

Commenting on the issue, FISME Secretary General, Anil Bhardwaj said, “Considering that all public services are on internet based platforms, the move was expected.  Although good, it may pose problems for the unorganised sector, especially in the rural areas where there is poor connectivity.

“For starters, it could be implemented in metros and based on experience, scaled up for rural areas,” he added.

Currently, a manufacturer is required to pay duty of Central Excise through internet banking (e-payment) if the total duty paid by the manufacturer exceeds rupees ten lakhs in the previous financial year as per rule 8 of the Central Excise Rules, 2002.

A service provider is also required to pay Service Tax through internet banking (i.e. e-payment) if the total tax paid by the Service provider exceeds rupees ten lakhs in the previous financial year as per rule 6 of the Service Tax Rules, 1994.  (KNN/PC)