Rakesh Singhi

Electronic Accounting System In Excise and Service Tax or EASIEST, as it is easily termed, is the procedure for payment of Excise duty and service tax. It requires the tax/ duty payer to submit only 1 copy of GAR-7 challan as against 4 copies of TR-6 challans in the bank as per old procedure.  The bank keeps counterfoil of challan and returns to the tax/ duty payer a computerized printout of the data entered by the bank as a receipt/ acknowledgement.

This challan is earmarked with a unique identification number called Challan Identification Number or CIN. The CIN has to be filled in appropriate places while filling excise/ service tax returns. The tax/ duty payer is relieved from attaching a copy of the challan with the return.

It is also important to know that CIN is a combination of three things:-

ü  7-digit BSR code which is unique for each bank.

ü  8-digit comprising date of tender/ deposit.

ü  5-digit challan serial number provided by branch which is unique for every transaction.

It should be understood that EASIEST is entirely a different concept from E-filing and e-payment. E-filing is the facility given by CBEC to file online returns. The user-id and password are obtained from the Systems Manager of the Jurisdictional Commissionerate’s computer section to avail this facility. The taxpayer is not required to visit the central excise and service tax office for filing returns.

E-payment is an online banking mechanism wherein almost every bank nowadays allows making Central excise and service tax payments. The taxpayer need not go to the bank to make payment. This is a cashless transaction.

The receiving bank branches of the nominated banks in EASIEST are to issue computerized challan receipt as an acknowledgement to the assessee. The collecting/receiving bank branches would hand over this receipt to the assessee as an acknowledgement/proof of the tax payment. This computer generated acknowledgement of GAR 7 challan would be given to the taxpayer after putting the signature and seal of the authorized signatory in token of receipt of the amount.  This would serve as the taxpayer’s receipt for payment made.  The collecting / receiving bank branch would retain the tear off counterfoil of the GAR7 challan submitted by taxpayer. The words “Taxpayer’s counterfoil” appearing in the GAR 7 challan would be substituted by the word “Counterfoil”. The computerized printout should necessarily have the following information: –

ü  Bank code

ü  Branch code

ü  Date of Tender of challan

ü  Challan sequence number

ü  Name of the Assessee

ü  Assessee code

ü  Location code (Commissionerate + Division + Range code)

ü  Major Head code

ü  The eight digit Accounting code for duty / cess in case of payments of Central Excise and Service code in case of Service Tax.

ü  Amount of duty / tax paid for each of the Accounting code

ü  Total amount

ü  Collection indicator / Mode of payment

ü  Date of realization of the instrument.

The above details should necessarily be there in the computerized printout. The banks, if they wish can give a printout of the entire details captured by them.

(Author can be reached at rakeshsinghi14@yahoo.com)

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