What changed
RBI, at the request of the Department of Financial Services, issued urgent instructions for agency banks handling CBEC business. Banks must extend branch hours to 6 PM on Dec 31, 2013, push the e-payment deadline to midnight, and accept VCES dues with a copy of ST-2 certificate even if the assessee code is not in NSDL records. NSDL clarified that banks should accept the GAR-7 challan and provide an acknowledgement, then update and transmit data on the next working day.
What it means for you
This is a one-day operational relaxation to help taxpayers meet the VCES deadline without system glitches. Banks must manually handle challans for missing assessee codes, increasing back-office workload. Non-compliance could lead to taxpayer complaints and regulatory scrutiny.
What you must do
- Ensure designated branches remain open until 6 PM on Dec 31, 2013.
- Extend e-payment deadline to midnight on Dec 31, 2013.
- Accept VCES dues with a copy of ST-2 certificate even if assessee code is missing from NSDL database.
- Provide acknowledgement on GAR-7 challan copy and digitize/transmit data to NSDL on the next working day.
- Treat this circular as urgent and communicate to all relevant staff immediately.
Who it affects
Agency banks authorized to handle CBEC business, Designated branch staff handling tax payments, Taxpayers under Service Tax Voluntary Compliance Encouragement Scheme, 2013
What if the assessee code is not available in NSDL or bank site?
Bank officials must still accept the GAR-7 challan and provide an acknowledgement on a photocopy as proof of receipt. On the next working day, after updating the assessee code in the bank master, the challan should be digitized and data transmitted to NSDL.
Are these instructions only for December 31, 2013?
Yes, the extended banking hours (until 6 PM) and e-payment deadline (midnight) apply only on December 31, 2013. The acceptance of VCES dues without assessee code in NSDL database is also limited to that date.
Who requested RBI to issue these instructions?
The Department of Financial Services, Government of India, requested RBI to facilitate payment of tax under the Service Tax Voluntary Compliance Encouragement Scheme, 2013.