Para 14.3.7 — CAM
Original Rule Text
14.3.7 CHALLAN BASED ACCOUNTING OF CENTRAL EXCISE AND SERVICE TAX COLLECTIONS:
14.3.7.1 The ICEGATE shares with ARPIT digitally signed IG Reference-wise Challan details on real time basis. The challan contains minor head-wise details of Central Excise/Service Tax payment amount.
14.3.7.2 ICEGATE sends IG Reference, Major Head, and amount to the Bank/RBI. The minorhead details are not sent to bank or RBI for payment. The payment transactions (CIGN) for each IG Reference are digitally signed by the RBI in case of NEFT/RTGS and by Authorized banks in respect of net-banking transactions and sent to ICEGATE.
14.3.7.3 ICEGATE shares the digitally signed payment transaction data (CIGN) to ARPIT. ICEGATE also sends an EOD file of all payment transactions received from banks and RBI showing the bank payment status and the ICEGATE integration status.
14.3.7.4 However, the payment transaction contains only Major head-wise amount. ARPIT matches the payment transaction data with the challan wise data received from ICEGATE. IG Reference is the common attribute (primary key) in both the data sets for matching them.
14.3.7.5 The payment transactions received are reconciled with the EOD file and Challan-wise minor head-wise accounting of the transactions are done under the respective Major Heads.
14.3.7.6 The Challan details contain minor head-wise details which are in 8 digit Reduced Code format as given by the tax payers. While accounting the challan-wise data in ARPIT, the accounting is done in the corresponding 13 +2 digit functional heads.
14.3.7.7 The accounting of Central Excise payments will be done under the PAO Code of 000582 –e-PAO Central Excise and the Service Tax payments (legacy and residual payments) will be made under the PAO code of 000581 e-PAO Service Tax.
14.3.8 There may be instances when the IG reference-wise credit notification has been received from RBI but the challan-wise transactions details have not been received from ICEGATE (may be due to some temporary integration failure). In such instance, the amount having been already settled to CFI needs to be accounted and hence will be booked under the Receipt
awaiting transfer head of the respective Major Head. The amount booked under Receipt Awaiting Transfer Head will be cleared on receipt of Challan and payment transaction details from ICEGATE
What This Means
Central Excise and Service Tax collections are accounted for at the challan level using minor head details. Although banks receive only Major Head information during payment, ARPIT matches the payment (CIGN) to the challan (which has minor head details from ICEGATE) using the IG Reference as the primary key. The 8-digit Reduced Code on challans is mapped to 13+2 digit functional heads in ARPIT. Separate PAO codes are used: 000582 for Central Excise and 000581 for Service Tax.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Challan-based accounting: minor head details from challan matched to payment data using IG Reference
- 2Banks receive only Major Head details; minor head details travel through ICEGATE to ARPIT
- 38-digit Reduced Code on challans mapped to 13+2 digit functional heads in accounting
- 4PAO Code 000582 for Central Excise; PAO Code 000581 for Service Tax (legacy/residual)
- 5If challan details are delayed, payment is booked under Receipt Awaiting Transfer (RAT) until matched
Practical Example
A manufacturer pays Rs 5 lakh Central Excise duty using an 8-digit accounting code on the challan. The bank processes the payment seeing only the Major Head (0038 - Union Excise Duties) and generates CIGN. ARPIT receives the CIGN from ICEGATE and matches it to the challan using the IG Reference. The 8-digit code '00381001' on the challan is mapped to the full 13+2 digit functional head for accounting under PAO Code 000582 (e-PAO Central Excise).
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why are there separate PAO codes for Central Excise and Service Tax?▼
What happens if ICEGATE's challan data is delayed?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.