The Indian Government decided to reduce the threshold limit of mandatory e- payment from January 1, 2014 with the Notification no. 15/2013-CE (NT) 22.11.13 and 16/2013- Service Tax 22.11.13 .
From January 1, 2014 , Companies are essential to resolve their tax liabilities online only after the total central excise duty they paid in the previous financial year exceeds INR1m (USD16,037).Also the same procedure will applies for service provider if their service tax payments top this threshold. From January 1, 2014, the threshold will fall to INR100,000.
The modification is intended to simplify trade and make the payment process more opportune. 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.
