Procedure for Online e-payment of Service Tax



Please Note: Online Payment of  Service Tax made through ICICI Bank, HDFC Bank and Axis Bank can be done by assesses for selected commissionerates only. Online payment of service tax made through any other authorised bank is accepted for all commissionerates.

In case of excess payment of service tax whether paid through GAR 7 Challan or paid online, an assessee can either adjust the excess Service Tax paid against his future liability or can claim service tax refund in case the self adjustment is not possible The most concerning part about Service Tax is the Procedure for Payment of Service Tax. When it comes to Service tax, we have two options of payment of Service Tax i.e. we can either make payment of ServiceTax physically in the specified banks or opt for online payment of service tax. Service Tax Payment is liable to be made on a Monthly/Quarterly basis and in case of deposit after the Due Date of Payment of Service Tax, Late Payment penalty is liable to be paid.

The Procedure for Physical Deposit of Payment of Service Tax in Bank through GAR-7 Challan as well as Online Payment of Service Tax has been explained below in this article.

It is pertinent to note here that Online Payment of Service Tax has been made mandatory wef 1st January 2014 in case the payment made during the previous year is more than Rs. 1 Lakh. This amendment has been brought in vide Notification No. 16/2013 – Service Tax dated 22nd Nov.

Physical Payment of Service Tax through GAR 7 Challan


An Assessee can make Payment of Service Tax manually in a bank as well through the GAR-7 Challan. With effect from April 2007 onwards, payment of service tax physically a bank shall be paid through the GAR-7 Challan. (Download: Service Tax GAR -7 Challan)

At the time of Payment of Service tax in a bank, the banker shall stamp the acknowledgement of the GAR 7 Challan with the CIN – Challan Identification Number. The Challan Identification Number has 3 parts –

    7 Digit BSR Code of the Bank where the Service Tax is deposited
    Date of Deposit (DD/MM/YY) of Tax
    Serial No. of Challan

Challan Identification No. (CIN) is stamped on the acknowledgement receipt to uniquely identify the tax payment. Challan Identification No. (CIN) has to be quoted in the return of income as a proof of payment. CIN is also to be quoted in any further enquiry. Therefore, you must ensure than the CIN (comprising of the above 3 parts) is stamped on the Challan by the Bank.

The Reserve Bank of India has already passed an order dated April 1, 2004 making it compulsory for all tax collecting branches of banks to use a rubber stamp acknowledgement that carried the CIN. A Separate CIN is given for each Challan Deposited.
GAR 7 Challan Status Enquiry

A Unique feature has been launched wherein the assessee can track the status of the Challans deposited in the Banks. On entering the Challan Identification No. on https://onlineservices.cbec.nsdl.com/csi/servlet/ExciseQuery, the Assessee can view the following details:-

    BSR Code
    Date of Deposit
    Challan Serial Number
    Assessee Code
    Name of Assessee
    Date of Receipt by NSDL
    Confirmation that the amount entered is correct

Online Payment of Service Tax


As the name suggests, any payment made electronically is called online payment or e-payment. In the case of service tax, deposition of Service tax payable to the bank via electronic transfer is called online payment of service tax. For e-payment of service tax, one should have a net banking account with one of the authorized banks which are mentioned in the list of banks authorised on http://www.aces.gov.in/ePayment.jsp

The following 3 steps explained will help you in Online Payment of Service Tax in 3 simple Steps.

Step 1


Log on to https://cbec.nsdl.com/EST/InputPageForEPaymentServlet, and enter your 15 Digit Service Tax Registration Number allotted to you by the department.

Enter the Characters in the Image Verification Tab. Based on your Inputs, an on-line validation then gets done to check/confirm if the has been registered in ACES.


Post validation, your details like name, address, Commissionerate Code etc. as present in the Assessee Code Master will be displayed. On the basis of your code, the type of tax to be paid will also be automatically selected.

Step 2


In the next tab, select the Accounting Codes for Service Tax by clicking on it which will lead to opening of a new opening from where you can select the Service on which Tax is to be paid.

After selecting the service, also select both the Education Cess

Step 3


After submitting the above details, choose the Bank from where you wish to make the payment and click Proceed

It will now lead your Bank Login Page. On entering your Bank Login details, it will lead you to a page wherein you have to Submit the details of Service Tax Payable and the Cess applicable thereon

On successful payment, a printable acknowledgement indicating the Challan Identification Number would be generated. This Challan counterfoil so generated would show the payment details and bank name through which online payment of Service Tax has been made. This Challan Identification Number is proof of payment being made would be required to be furnished at the time of filing of Service Tax Return

No comments:

Post a Comment