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Receipt Accounting Procedures

Receipt Accounting Procedures

The Central Board of Excise and Customs under the Department of Revenue, Ministry of Finance, is responsible for collection of Indirect Taxes through Central Excise and Service Tax Commissionerates, Customs Commissionerates and Customs Houses at Major ports. Since 01.07.1994, Service tax is also under the purview of CBEC. Various types of revenue collected by the formations under the Central Board of Excise and Customs are classified under the following Major Heads:

"0037 - Customs"
"0038 - Union Excise Duties (Union Excise Duty)"
"0044 - Service Tax"


Refund and Drawback payments authorised by various departmental authorities are classified under the appropriate sub-head "Deduct-Refunds" and "Deduct-Drawbacks" appearing under the prescribed Major & Minor heads of accounts.

(i) Central Excise Receipts: Union Excise Duties (Union Excise Duty) are collected country-wide by 92 Commissionerates of Central Excise headed by Commissioners. Commissionerates are further divided into 'Divisions' headed by Deputy / Assistant Commissioners. A Division, comprises of a number of 'Ranges', each headed by Superintendent known as 'Range Officer'. Assessees make payment of all duties into a branch of Nominated Public Sector Banks or Private Sector Banks, located within the Commissionerate exercising jurisdiction over it, through a single copy of GAR-7 Challan by means of Cash/Cheque/Pay Order etc. Receiving branches of banks will issue a Challan Receipt as an acknowledgment to the assessee. The GAR-7 Challan form with double date stamp will be sent by Receiving Branches along with the scrolls, to concerned Pay and Accounts Offices, through their respective Focal Point Branches.

(ii)  Customs Receipts: Custom duties are collected by 36 Commissionerates. The Customs Houses are located at the major ports of Mumbai, Kolkatta, Chennai, Cochin, Vishakhapatnam, Kandla, Nhava Sheva and Goa and have Departmental Treasuries. The functions of collection of customs dues and remittance of net collections into the Focal Point Bank have normally been performed by these Customs House Treasuries. However, since 1997-98, in addition to the Departmental Treasuries, the Electronic Data Interchange System (EDI), was introduced at selected major Custom Houses (where Departmental Treasuries were earlier functioning) and in some other Custom Commissionerates to collect custom duty and to pay duty drawback payments through electronic media i.e through computerized environment. In respect of Minor Ports where there are no Departmental Treasuries, Customs Duty is paid through challans in the nominated Focal Point Bank, as in the case of Central Excise Receipts.

(iii) Service Tax: The Government of India, Ministry of Finance, for the first time levied a Service Tax on Telephones, Insurance and Stock Brokerage in the Budget of 1994-95 with effect from 1.7.1994. The Service Tax net has been extended by the Government of India from time to time. Presently, Service Tax is levied on 115 services. The existing system as applicable to the collection of Central Excise in Central Board of Excise & Customs revenue is also applicable to the Collection of Service Tax. Accordingly, assesses deposit the tax to the authorised branches of the nominated banks under CBEC, through a single copy of GAR-7 Challan, by the 5th of the following month. Service Tax so collected from assesses is credited to the Major Head "0044-Service Tax".

(iv) Education Cess: Education Cess is levied @ 2% on the aggregate duties of all excisable goods manufactured in India, on the aggregate import duties (except safeguard duties and antidumping duties) and services subjected to Service Tax. While the Education Cess on excisable goods and imported goods have come effect from 8th July, 2004, the same on taxable services have been levied w.e.f. 10.09.04. The nomenclature of "Education Cess" has been amended as "Primary Education Cess".

(v) Secondary and Higher Education Cess: Secondary and Higher Education Cess @ of 1 % has been levied on all excisable goods, imported goods taxable services from the Union Budget - 2007.

Revenue Flash Figures: The revenue collections by the Department play a major role in financing the Central Government’s budget. Collections of Customs and Central excise duties are closely monitored by the Ministry of Finance. The receipt figures, provided by the office of the Pr.CCA, are therefore of immense utility since they reflect the actual position of the receipts into Government account in the Reserve Bank of India. Flash Figures of the Revenue Receipts are compiled by the office and are sent, at the beginning of every month, to Secretary (Revenue)/ Chairman, Central Board of Excise and Customs and provide a clear picture of the trends in collection revenue receipts in terms of actual cash inflows into government account. These figures are accompanied by a detailed analysis of receipts and trends against Budget Estimates. These Flash Figures and Analysis are essential management inputs for the CBEC and the Department of Revenue, and present quick and reliable estimates of the actual collections during the month.