The Hindu Business Line : Chidambaram inaugurates e-payment facility for Central excise, service tax

The Finance Minister, Mr P Chidambaram, with the Chairman & Managing Director of Union Bank, Mr K. Cherian Varghese, inaugurating the `e-Payment of Central excise and service tax' facility in the Capital on Wednesday. - Kamal Narang

New Delhi , May 11

THE Union Finance Minister, Mr P. Chidambaram, while inaugurating the e-payment facility for Central excise and service tax today, said the Government intends to hard sell the newly launched facility to get as many big corporate assessees on board as possible.

The revenue department was working on a system where the 5,500 assessees (total excise assessee base of one lakh) that contributed nearly 90 per cent of the excise revenues could be persuaded to come online, he added.

"I think some progress is to be made in our discussions with the chambers of commerce. The department would come out with the announcement on this shortly," Mr Chidambaram said.

He highlighted that the e-payment facility was beneficial to the taxpayer, tax collector and the Government.

Central excise collections during 2004-05 stood at about Rs 99,352 crore. For the year 2005-06, the budget estimate for Central excise has been pegged at Rs 1,21,533 crore.

Five banks — Union Bank of India, ICICI Bank, IDBI Bank, HDFC Bank and UTI Bank - have started offering the e-payment facility for central excise and service tax from today.

While noting that two public sector banks are already offering e-payment facility, Mr Chidambaram held that there was room for more public sector banks to join the fray.

"It's in the interest of the other public sector banks to quickly join the system. Otherwise, it is possible that some part of their business would be diverted to these five banks, which have joined first. It should be possible for other public sector banks to join as I'm told the software is the same," he added.

The Finance Minister also promised to make the tax administration more taxpayer-friendly in the coming days. He said that the Central Board of Direct Taxes and the Central Board of Excise and Customs have been asked to launch a major campaign to communicate to the taxpayer that the two departments would be friendly towards them.

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Chidambaram inaugurates e-payment facility for Central excise, service tax