Mandatory e-Payment of Service Tax by large taxpayers : Proposed interim accounting arrangement for e-Payment collection. - Service Tax - EDP/e-Bank/2006-07/365

Office of the Pr. Chief Controller of Accounts Central Board of Excise and Customs AGCR Building, I P Estate New Delhi No. EDP/e-Bank/2006-07/365 Dated : October 3, 2006 Sub : Mandatory e-Payment of Service Tax by large taxpayers : Proposed interim accounting arrangement for e-Payment collection. Kindly refer to our telephonic conversation on the subject dated 03.10.2006. With the introduction of mandatory e-Payment for high value Service Taxpayers, the ned for eliminating the concept of designated banks for collection of tax through e-Payment arose. A detailed paper on Process and Accounting Procedure for Electronic Accounting Solution for e-Receipts (EASeR) has already been prepared and submitted for approval. Till EASer is approved and stabilized, the following interim accounting arrangement for e-Payment is proposed : (a) The banks as per the enclosed list offering e-Payment solution will be allowed to accept e-Payment 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-Payments 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 made for the Commissionerate that the 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. (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 Commisionerate 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 proposed 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 stabilized. (V.N. Kaila) Pr. Chief Controller of Accounts