Service Tax — Reconciliation of revenue receipts under the Major Head 044 - Service Tax - Trade Notice C. No. III/12/1/99 - Cochin

In order to streamline the reconciliation work of revenue receipts under the Major Head 044 (Service Tax) it has been decided to revise the present procedure and do the reconciliation work in computer on the same lines as being done in the case of challan reconciliation relating to 038 payments. In this connection, your attention is invited to this office letters C. No. III/12/2/93-Accts. II, dated 16-10-1996 and C. No. III/20/23/97-Accts. II, dated 12-1-1998. In order to facilitate proper accounting of the amounts to the correct head of accounts, revised accounting codes of Major/Minor/sub-heads allotted for all services under Service Tax Act vide Annexures I II of this office Trade Notice No. 152/97, dated 14-10-1997 and subsequent Trade Notice No. 2/99, dated 8-1-1999 may also be referred to. The duplicate copy of the receipted bank challans received from the Range Officer will be entered into the computer with Sub-headingwise details in the concerned divisional office Computer Cell. The divisional Computer Cell after the data entry pertaining to each quarter upto 9/98 and thereafter on the Half yearly basis will sent the computer floppies to the Headquarters Computer Cell under intimation to ACAO II, PLA section. The computerised data will be transferred on a floppy from PAO to the Computer Cell of Headquarters Office. Based on this data, 044 quarterly statement will be generated and sent to all the concerned Range Officers in duplicate who will ensure that for every duplicate copy of challans received by them there is a corresponding entry in the statement. If there is no corresponding entries in the statement, the Range Officer will send a copy of the challan along with his Verification Report. Similarly if there is no challan with him corresponding to PAO Challan in the statement, a suitable remark to this effect will be made in the copy of the 044 statement to be returned to Headquarters office after verification. A certificate as in the case of 038 will be incorporated in the 044 statement by the officer verifying and resubmitting the said statement to ACAO II., Hqrs. Office, Cochin I Commissionerate, Cochin-18. The above changed procedure will be implemented from 1 st January, 1998 onwards and for this purpose revised programmes for entering the Service Tax returns and challans has already been installed in division machines. In this connection, all Range Officers/SOS should ensure that the following details are clearly shown in the TR-6 challans . 1. ECC No. 2. Registration Number 3. Bank Branch No. in which the tax is paid. 4. Month/Quarter for which the tax is paid and the category of service in Column I of challan. 5. The correct head of account for tax, interest or penalty and other receipts. 6. A running serial number should be allotted by the assessee himself on the top of the challan. As instructed vide this office letter dated 12-1-1998 (copy enclosed) Sl. Code No. as allotted may be indicated in the challans distinctly according to the various Minor heads to facilitate reconciliation in computer. In order to implement the revised procedure firstly action has to be initiated at the division level and Asstt. Commissioner s may ensure that after the data entry, the first quarterly report (Computer Floppy) for the period from Jan., 1998 to March, 1998 is sent to Headquarters Computer Cell before 31st August, 1998 positively so that the changed procedure should be made effective immediately. It may also be ensured by the Range Officer that the verification reports of quarterly statement reach this office (PLA Section) by name to ACAO II within 15 days of receipts of the statement in range office. All the Asstt. Commissioners/Range Officers are requested to bring the practical difficulties, if any, to the notice of the undersigned so that remedial action could be taken immediately. Sub : Central Excise - Reconciliation of challans - Furnishing of correct head of account/Assessee s Code No. etc. in the challans under which the payments made - Further instructions - Issue of - Regarding It has been decided that the reconciliation of challans relating to payments made towards Service Tax under different minor heads will be done on computer on the same lines as in the case of challans relating to 038 payments. There are a lot of difficulties in implementing because of improper filling up of challans. In this connection, your attention is invited to this office letter C. No. III/20/10/Misc./95 Accts. II, dated 13-12-1995. enclosing a specimen of new challans indicating head of accounts for various items for depositing duty. Copy of the same is enclosed for ready reference. Recently, revised accounting codes of Major/Minor/Sub-heads were allotted for all services under Service Tax Act for depositing Service Tax vide Annexures I II of this office Trade Notice No. 152/97, dated 14-10-1997 . In the above Trade Notice, the assessees were requested to indicate in the challans the revised allotted headings while depositing the Service Tax. It has been noticed that some of the assessees are not mentioning the correct Code Nos. for payment made towards Service Tax under different minor heads. To streamline the reconciliation work of revenue receipts under Service Tax on computer, the deposit have to be made by the assessees distinctly according to the major/minor/sub-heads of accounts and the `Sl. Code No. mentioned in the Annexures I II of the said Trade Notice has to be indicated in the challans instead of the `Alpha Numberic Code No. without fail. In order to facilitate accounting of the amounts to the proper head of accounts, all Range Officers and Sector Officers are requested to ensure that the informations are correctly furnished by the assessees in the challans before presenting the same to the Bank for remittance.