Service tax payers can use designated post offices in the capital from July 1 to register themselves for paying tax and filing their returns.

This facility will, however, come at a cost. Service tax payers will have to pay the postal department Rs 100 each for registration and returns.

The revenue department has tied up with the department of posts for the pilot project. It will initially be launched in Delhi, before being extended to other parts of the country.

Government officials told Business Standard that the postal department had identified 22 post offices where the facility would be available from next month.

The revenue department is training around 100 personnel from the department of posts for this.

Officials said the main objective behind using post offices for collection of service tax was to provide accessibility and increase the number of service tax payers.

At present, a taxpayer has to register or file his returns with the service tax department's field office, depending on the taxpayer's jurisdiction.

Currently, there are around 80,000 registered service tax assessees in the capital, of which around 45,000 file their returns.

The revenue department will soon come out with advertisements in the media to publicise this facility.

Service tax payers have to file their returns half yearly -- by April 25 for the previous six months up to March 31 and by October 25 for the six months ending September 30.

The move to extend this facility in a phased manner to all towns will, however, depend on the success of the ongoing computerisation drive in post offices.

"A majority of the capital expenditure of the DoP is towards networking the post offices. On completion, we will have a better control of the work load and will also be able to handle additional data inputs, when service tax returns are filed," a postal department official said.