TRADE NOTICE  NO: 130 /2003                                                                                                            Dated: 16.9.2003

Sub: Remittance of  excise duty  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 using 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  TR 6  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  TR 6  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  ST 3  returns  which is going to be of great convenience to assessees in future.  An assessee  filing  ST 3  returns electronically need not submit manual copies of the returns or copies of the  TR 6  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 indicate  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.

     The contents of the Trade Notice may be brought to the knowledge  of all constituent  members of Trade Associations/Chamber of Commerce.

(Issued from file C.NO.IV/16/4 /2003-C.Ex.Pol )



//ATTESTED//                                                            (D.P. NAIDU)




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