E-Payment of Service tax — Authorisation of bank for tax collection and interim accounting arrangement - Service Tax - Trade Notice No. 36/2007

Commissioner of Central Excise, Pune-II Trade Notice No. 36/2007 dated 27-6-2007 Attention is invited to the Controller of Accounts, CBEC, New Delhi s letter F. No. Coord II/6-5/e-Payment/07/104, dated 11-6-2007 (copy enclosed) wherein necessary instructions for authorization of Central Bank of India for following the interim accounting arrangements for e-payment for all Central Excise Service Tax Commissionerates without the restriction of Commissionerate-wise authorization have been issued. All the members of Trade Associations and Chambers of Commerce and Industries are requested to bring the contents of the Trade Notice to the notice of their member constituents. Enclosures Coord II/6-5/e-Payment/07/104 Office of the Pr. Chief Controller of Accounts Central Board of Excise Customs A.G.C.R. Building, 1st floor, I.P. Estate, New Delhi. To, The General Manager, Reserve Bank of India, Deptt. of Govt. Bank Accounts, Central Office, 4th Floor, Byculla Office Building, Opp. Mumbai Central Station, Byculla, Mumbai - 400 008. Subject : Mandatory e-Payment of Service Tax by large taxpayers : Proposed interim Accounting arrangement for e-Payment collection. Sir, The Controller General of Accounts has approved Central Bank of India for collection of indirect taxes through electronic mode. Hence the following interim accounting arrangement for e-Payments in respect of Central Bank of India is proposed :- (a) The bank will be allowed to accept e-Payments for all Central Excise and Service Tax Commissionerates without the restriction of Commissionerate-wise authorization. (b) However, for physical collection of CBEC revenue, bank will follow the existing restriction of authorised Ccmmissionerates. (c) For all authorised Commissionerates, bank through their existing Focal Point Branches will collect all physical payments and e-Payments for preparing the scroll. These FPBs will act as receving branch and FPB for e-Payment collectionds. The scrolling will be Commissionerate-wise and Major Head-wise. (d) Collection through e-Payment mode for other Commissionerates that are not covered for physical collection will be collected at a branch in Delhi (Such CBS branch will be identified by the bank) for scrolling. The branch so identified will prepare hard copies of challan (4 copies). The distribution and usage of stamped and receipted Challans is as under :- Challan Copy To whom Purpose/Use One Concerned Pay Accounts Office (along with the scroll) Detailed Accounting Reconciliation Two Taxpayer (at mailing address) Tax return record One Designated Divisional Officer of the concerned Commissionerate Reconciliation with tax return The scrolling will be Commissionerate-wise and Major Head-wise. (e) Reporting to bank s link cell and fund settlement with Reserve bank of India will be as per the existing procedure (Commissionerate-wise and Major Head-wise) (f) The mailing address of concerned Commissionerates against each Commissionerate Code and mailing address of Pay and Accounts officers against each Commissionerate Code will be provided to the bank to enable correct distribution of stamped and receipted Challans as above. The above proposed procedure will allow revenue reconciliation and bank reconciliation without any deviation from the existing procedure till the Electronic Accounting Solution is put in place and stabilized. You are requested to issue necessary orders and intimate the bank accordingly. Yours faithfully Sd/- (Siya Sharan) Controller of Accounts