The Service Tax department has vide its notification no. 16/2013 dated 22nd November 2013 reduced the threshold limits beyond which service tax has to be paid through internet banking system.
Hitherto Rule 6(2) of the Service Tax Rules 1994 provided that “where an assessee has paid a total service tax of Rs.10 lakhs or more including the amount paid by utilisation of Cenvat Credit in the preceding financial year, then he shall deposit the service tax liable to be paid by him electronically through internet banking”
This limit of Rs.10 lakhs has been reduced to Rs. 1 lakh vide the 2013 notification cited above. The amendment in the threshold limits apply with effect from 1st January 2014. Which means where in financial year 2012-13, the assessee has paid service tax of more than Rs.1 lakh then for all service tax payments on or after 1st January 2014, the payment has to be done by way of internet banking system.