Central Excise - e-payments and e-filing will increase from new Financial Year

Central Excise - e-payments and e-filing will increase from new Financial Year
Uma Kothari, CA

The Central Government has issued notification to increase ambit and scope of mandatory e-payment and e-filing of returns in relation to Central Excise duty w.e.f. 01.04.2010. The scope is restricted to Central Excise and apparently does not cover Service Tax. At present limit for compulsory e-payment is Rs.50 lakh of net payment (excluding CENVAT) in preceding year. From 01.04.2010 the limit will be Rs.10 lakh (including payment by way of CENVAT credit) in any preceding year to impose obligation to make e-payment as well as to file e-returns. It is suggested that combined amount of Central Excise and Service tax may be considered and uniform Rules may be made for both in a combined manner.



New Notification:

The Central Government has vide recent notification No. 04/2010-Central Excise (N.T.) issued from its Head Quarters at New Delhi, on 19th February, 2010 a notification to increased the ambit of electronic payment and e-filing of returns of Central Excise amending the Rule no. 8 and 12 of the Central Excise Rules, 2002 w.e.f.01.04.2010. This is by exercising the powers conferred by section 37 of the Central Excise Act, 1944. Being related to a Central Legislation the notification will be applicable on all India basis.