Any payment of excise duty or service tax of Rs. 1 lakh or above will now to be paid electronically. This new rule is applicable from January 1, 2014. Earlier, those with dues of Rs 10 lakh and above were required to electronically pay their taxes.
“From January 1, 2014, a manufacturer or a Service Tax payer who has paid a duty or tax of more than Rs 1 lakh in the previous financial year shall be required to pay duty or tax through Internet banking,” the Finance Ministry said.
The Government wants to add funds as much as it can electronically as it reduces the time spent as well as very little chances of fraud etc. It is also convenient for the assessees to pay electronically and there is always a solid proof for e-payment compare to cash payment.