RBI/2004/135
DGBA.GAD.No.1142 /42.01.001/2003-04
April 2, 2004
The Chief Executive Officer
All Agency
Banks (as per list)
Dear Sir,
Procedure for Collection of Taxes
at Bank Branches - Customer Service
Please refer
to "Accounting System for Direct Taxes" (Pink Booklet) wherein detailed instructions
were laid down for collection and accounting of Income and other Direct Taxes
and payments of Income Tax Refund Orders (ITROs) by the branches of Public Sector
Banks. It is observed that although procedure for collection of tax has been explained
in detail, some bank branches do not follow the same meticulously. With a view
to improving customer service in this regard, we specifically draw your attention
to the following aspects :
(i) Issue
of Token : While instructions issued by Reserve Bank are quite clear regarding
the issue of paper token as an acknowledgement of payments, it is observed that
a large number of authorised branches do not issue such tokens. In many places,
there are informal arrangements wherein the taxpayer is asked to collect the challan
after a specific date from the bank branches. In some cases, the receipted challans
are not kept securely and are placed in an open box. The customers are allowed
to freely pick up their challans without any identification. Such a practice is
most objectionable. In this connection, your attention is drawn to our Circular
DGBA.GAD.No.H-68A/42.02.001/2003-04 dated July 29, 2003 reiterating the procedure
to be followed in the case of receipted challans. As you are aware, in the case
of challans deposited with cheque or draft, the receipted challans will be issued
only on realisation of the amount of cheque or draft and hence the paper token
should indicate the date on which the receipted copies of the challans would be
kept ready so that the assessee makes an arrangement to collect the receipted
challan on the date given in the token.
(ii) Receipted
Challan : The receipted challan should be made available to the assessee
within 4-5 days, based on the local Clearing arrangements. The branches should
ensure that this stipulated waiting period must not be exceeded and any deviation
in this regard will be viewed seriously by Reserve Bank. The receipted challans
should be handled with care and in a secure manner till they are handed over to
the assessees across the counter on presentation of the relevant paper token.
Under no circumstance, the receipted challan should be kept in open box accessible
to customers.
(iii) Double
Date Stamp on Receipted Challan : We reiterate that the challan should
bear two dates i.e. the 'Date of tender' of challans and instruments and the 'Date
of realisation' of proceeds of the instruments as specified in Annexure-V of the
Pink Booklet.
(iv) Acceptance
of Clearing Cheques : It is observed that some of the banks are reluctant
to accept cheques drawn on other banks while receiving taxes resulting in practice
of Chartered Accountants/Tax Consultants tendering their own cheques on behalf
of their clients. As accepting cheques drawn on other banks will greatly facilitate
the customers, banks are advised not to turn back customers who tender challans
with cheques drawn on other banks.
(v) Do's
and Don’ts : A list of Do's and Don'ts as given in the Annexure-IV of
the Pink Booklet were not being supplied to the bank staff dealing with the Direct
Tax collection work as required. You are advised to do the needful and submit
compliance in this regard.
2. As
you are aware, your bank is acting as the agent of Reserve Bank for conduct of
Government Business. For doing so, Reserve Bank is compensating your bank by way
of payment of Turnover Commission. It is, therefore, incumbent on your branches
to follow the procedures set out by us and render good customer service. We request
you to advise your authorised branches to follow the instructions contained in
our various Memoranda/Circulars issued from time to time and ensure that tax payers
are not inconvenienced in the payment of taxes.
3. We
advise that failure to observe the prescribed procedures and guidelines would
render the concerned branch liable for de-authorisation or such other penalties
as the Reserve Bank may deem fit.
4. Please
acknowledge receipt.
Yours sincerely,
sd/-
(Prabal
Sen)
Chief General Manager