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Sub: Remittance of excise duties and service tax – Need for indicating correct codes – Reg. ***** The Central Board of Excise and Customs is presently giving major thrust to automation of all processes involved in levy and collection of excise duty and service tax. An important area which is to be taken up immediately for automation is the accounting procedure of remittances made by the assessees in the banks. For facilitating this certain standard practices are to be followed by the assessees which are explained in this trade notice.
1. Excise Control Code/Service Tax Payer code:- Every Central Excise/Service Tax assessee should be having a unique identifier called Excise Control Code (ECC) or Service tax Payer code (STPC). This code will be 15 characters long. If any assessee does not have such an identifier they should immediately file necessary particulars to the concerned Central Excise formation and get the code allotted. This code should be indicated in every challan by which duty is remitted into the bank.
2. Sl.Nos. for challans: Each assessee should assign Sl.Nos. to the challans used by him during a financial year. For the same ECC/STPC the same Sl.No. should not be repeated during the financial year. There are many assessees who maintain more than one Personal Ledger Account (PLA) and they are in the habit of assigning Sl.No.1 to different TR6 challans used for remitting money into each of the PLA. This should be avoided. Ideally for one ECC there should be only one PLA. If for any special reason more than one PLA is permitted separate blocks of numbers should be blocked for each PLA. For example Sl.No.1 to 300 may be blocked for PLA 1 and Sl.No.301 to 600 for PLA 2 and Sl.No.601 to 900 for PLA 3 and so on. And the first remittances in respective PLAs in a financial year numbers 1, 301, 601 and 901 respectively should be used. The crux of the matter is that a combination of ECC and Challan Sl.no. should uniquely define a challan. The challan number should be indicated at the top right hand corner of the challan.
3. Account Head Code: Often type of duty paid and account head codes are indicated wrongly in the TR6 challans. This happens especially when challans are typewritten and the 2nd and 3rd copies are not properly aligned to the first copy. The correct type of duty and account code should appear against every amount paid in every copy of the challan
It may be noted that the department has already facilitated electronic filing of ST3 returns which is going to be of great convenience to assessees in future. An assessee filing ST3 returns electronically need not submit manual copies of the returns or copies of the TR6 challans if the correct STP code is indicated in the challans while remitting the money. If such code is not indicated there may be enquiries and correspondence and interaction with the department. So maximum care should be taken to indicating codes correctly in the challan.
In the near future it is proposed to facilitate electronic filing of excise returns also if co-operation from trade is forthcoming in furnishing all information correctly on TR-6 Challans.
Co-operation from all assessees is requested.
All the Trade Associations are requested to given wide publicity to the contents of this Trade Notice amongst their members.
RAJENDRA PRAKASH COMMISSIONER Authority Message ID 6332 dt. 14.9.2003.
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