Mandatory e-payment of Service tax by large tax payers — Interim accounting arrangement - Service Tax - Trade Notice No. 05/ST/2006

Commissioner, Customs Central Excise, Noida Trade Notice No. 05/ST/2006 dated 20-10-2006 On the basis of the letter C. No. Coord II/9-7/M. Banking/2005/518 dated 17-10-06 issued by the Pr. Chief Controller of Accounts, CBEC, AGCR Building, 1st Floor I. P. Estate New Delhi and that with the introduction of mandatory e-Payment for high value Service Taxpayers, the need for eliminating the concept of designated banks for collection of tax through e-Payment arose. In continuation of the Trade Notice No. 4/ST/2006 dated 7-9-2006, it is further brought to the kind notice of all Central Excise and Service Tax Assessees and Trade Associations. The following interim accounting arrangement for facilitating e-payment from 20 Banks is stipulated : (a) The banks as per the enclosed list offering e-Payment solution 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, banks will follow the existing restriction of authorized Commissionerates : (c) For all authorized Commissionerates, banks through their existing Focal Point Branches will collate all physical payments and e-Payment for preparing the scroll. These FPBs will act as receiving branch and FPB for e-Payment collections. 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 collated 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. (c) 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 offices against each Commissionerate Code will be provided to the banks to enable correct distribution of stamped and receipted challans as above. The above procedure will allow revenue reconciliation and bank reconciliation with out any deviation from the existing procedure till the Electronic Accounting Solution is put in place and stabilize. The Trade and Industry Associations, are requested to give wide publicity to the contents of this Public Notice. Enclosures : List of Banks authorized to collect e-payment Banks authorised to accept e-Payment for all Central Excise and Service Tax Commissionerates 1. Union Bank of India 2. State Bank of India 3. Punjab National Bank 4. Indian Overseas Bank 5. State Bank of Travancore 6. Bank of India 7. Corporation Bank 8. State Bank of Saurashtra 9. Indian Bank 10. State Bank of Patiala 11. State Bank of Hyderabad 12. Syndicate Bank 13. State Bank of Bikaner Jaipur 14. Vijaya Bank 15. State Bank of Indore 16. Bank of Maharashtra 17. Canara Bank 18. State Bank of Mysore 19. United Bank of India 20. Bank of Baroda