What changed
RBI has made it mandatory for taxpayers to quote the assessee code and location code on G.A.R.7 challans. Banks are now required to reject any challan without a valid assessee code. Additionally, from January 22, 2008, NSDL will only accept RT 51 and RT 58 records with structurally valid assessee codes for challans with cheque tender dates after that date.
What it means for you
Banks must tighten their front-end verification processes for EASIEST payments to avoid rejection of records. Non-compliance could lead to operational disruptions and data quality issues. Banks need to train staff on the four scenarios for handling assessee codes and ensure proper digitization of location codes and addresses.
What you must do
- Train branch staff to reject G.A.R.7 challans without a valid 15-digit assessee code.
- Implement verification procedures using the NSDL-EASIEST website for assessee codes not in the directory.
- Ensure digitization of location codes as per the directory or NSDL website, and capture complete assessee addresses.
- Update systems to handle cases where assessees lack a valid code, using PAN/TAN-based codes as specified.
- Prepare for the January 22, 2008 deadline when NSDL will reject records without structurally valid assessee codes.
Who it affects
All agency banks participating in EASIEST, Bank branches accepting Central Excise and Service Tax payments, Taxpayers making payments under EASIEST
What happens if a taxpayer does not have an assessee code?
The bank should ask for proof of PAN/TAN registration and a location code. For Central Excise, digitize PAN + 'XM' + 'ZZZ'; for Service Tax, digitize PAN/TAN + 'ST' + 'ZZZ'. If no location code, use the Commissionerate code associated with the branch plus 'ZZZZ'.
How should banks verify an assessee code not in the directory?
Check the NSDL-EASIEST website (www.cbec.nsdl.com) using the search feature. If found, accept the challan and digitize the assessee code and location code as displayed on the website.
What is the deadline for implementing these changes?
From January 22, 2008, NSDL will only accept RT 51 and RT 58 records with structurally valid assessee codes for challans with cheque tender dates after that date. Banks must comply immediately.