5 December 2012

e-Payment of VAT – FAQs

Authored by: Chandrasekhar G. |

e-Payment is a facility provided to the taxpayers to make Commercial Taxes payments through internet, using net-banking facility.

Below are the Frequently Asked Questions (FAQs) related to e-Payment of Value Added Taxes (VAT).

1. What is e-Payment ?
e-Payment is a facility provided to the taxpayers to make Commercial Taxes payments through internet, using net-banking facility.

2. How can I use this facility to pay Commercial Taxes through my bank?
You should have an account with net banking facility and your bank should be authorized to make e-payment of Commercial Taxes of Karnataka.

3. Which are the authorized accounts for e-Payment?
Presently ten banks have been authorized and they are: SBI, SBM, SBH, Syndicate Bank, Canara Bank, union Bank of India, Corporation Bank, Bank of Baroda, Bank of Maharashtra and Vijaya Bank.

4. Is it mandatory to pay the Commercial Tax online ?
e-Payment is mandatory at present for the payment of tax or any other amount if it is one lakh rupees or more.

5. What is the procedure for paying tax online?
Step 1: Open the website: www.vat.kar.nic.in/epay
Step 2: There are different categories of Commercial Taxes under e-payment. Select the type of Tax you want to pay and Click on it.
Step 3: Select whether you are a registered dealer, unregistered dealer or new dealer. If you are a registered dealer, enter your TIN/RC number. On entering of TIN/RC, your name and address and LVO/PTO Office code will be displayed automatically. If you are unregistered dealer, you must enter your Name / Company Name, Address and select the office code where you are registered
Step 4: Select the payment type you would like to make eg. Monthly, Quarterly or On Department Demand. If Monthly, then, enter the Year and select the month. If Quarterly, select the year and Quarter. If On department demand, then enter Order no., Order date and Designation of the authority
Step 5: Enter the tax details such as tax amount, interest amount and penalty amount. If there is no amount to be entered, then, enter 0 (zero).
Step 6: Now select the bank through which you want to make the e-payment. Click on Next, the screen will display the details of the transaction that have been entered. Now click on Submit. You will see a unique Commercial Tax Reference number (CTD Ref. No.) that is generated. Note this number for future use.
Step 7: Now click on ‘Click here for Payment’. You will be directed to the net-banking website of your bank. Enter your login and password provided by the banker and confirm the transaction. Click on the link to return to Commercial Tax website to check the status of the transaction.

6. What will happen after I confirm the payment of tax at my bank’s site?
Your bank will process the transaction online by debiting your bank account indicated by you and generate a printable acknowledgment indicating the Commercial Tax Reference number and the Bank Reference Number.

7. What is the timing for making payment through Internet?
You will have to check the net-banking webpage of your bank’s website for this information.

8. Is there any service charge for making the e-Payment?
It depends upon your bank.

9. How to check that my e-Payment is successful?
After making the e-Payment, you will get the status of the transaction, whether Successful or Failed. In case of any Internet problem, you do not get the status back, then you can check it using the ‘Verify-Payment’ option available on the main page of the payment. In this option enter the transaction details like the CTD Ref. No., TIN, Date, Amount and click on Verify. Select the transaction from the list and you will receive the transaction status. For Retail accounts , the status is Successful or Failed. For Corporate accounts, you will receive ‘Partial’, ‘Success’ or ‘Fail’. ‘Partial’ means that the payment has been successfully done, but is pending for Approval.

10. What is ‘e-Challan’ option in the menu?
‘e-Challan’ option is used to print the challan for the successful transaction of e-payment.

11. Can I make payment for the old CTD Reference number ?
No, you cannot make payment for the old CTD reference number. You will have to enter the transaction details once again, generate the new CTD reference number and make the payment.

12. If my Account gets debited more than once for the same e-tax transaction then what should I do?
During the transaction or after completing the transaction bank site encountered any error or got disconnected before generating the Bank Ref. No. then instead of doing the same transaction again kindly check your Account, if account is debited twice, then use the ‘Verify’ option in e-payment website for updating the status of the transaction and you can claim refund from the jurisdictional Local VAT Officer.

13. How secure is the transmission of data to the website for e- payment?
All transmission through Commercial Tax e-Payment website is encrypted and is with Secure Socket Layer (SSL) authentication. With respect to the banks, it depends on the security measures provided by the bank for net-banking.

14. How does this system of payment of taxes through internet benefit me as a taxpayer?
This system is beneficial to you as you are not required to personally visit the bank/department to make the payments. Payment can be made electronically at your convenience from any place where an internet facility is available e.g. your office, residence, etc. Further, you would get the CTD Reference Number instantaneously which is required to file your return.



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