Electronic payment of Excise and Service Tax – Electronic Filing
of Returns
[CBEC Circular No. 919 dated 23rd March 2010]
Sub.
Procedure for electronic filing of Central Excise and Service Tax returns and
for electronic payment of excise duty and service tax.
Attention is invited to
Circular No. 791/24/2004 dated 01.06.2004 and No. 52/1/2003 dated 11.03.2004
(modified by Circular No. 71/1/2004-ST dated 02.01.2004) prescribing the
procedure for electronic filing of Central Excise and Service Tax returns.
Attention is also invited to Notification No. 04/2010-Central Excise (NT) and
No. 01/2010-ST both dated 19.02.2010 providing for mandatory electronic filing
of Excise and Service Tax returns and payment of excise duty and service tax by
all the assessees who have paid central excise duty
or service tax of Rs. 10 Lakhs or more (including payment by utilisation of Cenvat credit) in
the previous financial year.
2. DG (Systems) has prepared comprehensive
instructions outlining the procedure for electronic filing of excise and
service tax return and electronic payment of taxes under ACES. The same is
enclosed. The said instructions outline the registration process for new assessees, existing assessees,
non–assessees and for Large Taxpayers Unit assessees, steps for preparing and filing of return, using
of XML Schema for filing dealers’ return, procedure for obtaining
acknowledgement of E-filed return, procedure for E-payment etc. It is requested
to sensitise concerned officers and trade and
industry regarding the instructions.
3. As a large number of taxpayers would be
required to file Excise and Service Tax return and to pay the taxes
electronically, it is requested that trade and industry may be provided all
assistance so as to help them in adopting the new procedure.
4. Field formations and trade/industry/service
provider may also please be informed suitably.
F.No. 201/20/2009-CX 6
Procedure for Electronic filing of Central Excise and Service Tax
returns and Electronic Payment of Taxes
In continuation of its efforts for
trade facilitation, CBEC has rolled-out a new centralized, web-based and
workflow-based software application called Automation of Central Excise and
Service Tax (ACES) in all 104 Commissionerates of
Central Excise, service Tax and large Tax Payer Units (LTUs) as on 23rd
December, 2009. ACES is a Mission Mode project (MMP) of the Govt. of India
under the national e-governance plan and it aims at improving tax-payer
services, transparency, accountability and efficiency in the indirect tax
administration in India. This application has replaced the current applications
of SERMON, SACER, and SAPS used in Central Excise and Service Tax for capturing
returns and registration details of the assessees and
hence, in supercession of the CBEC Circular
No.791/24/2004-CX. dated 1.6.2004 and CBEC Circular No. ST 52/1/2003 dated
11.03.2003, this revised circular is being issued.
II. Modules
The ACES application has interface for:
Central Excise Assessees
Service Tax Assessees
Central Excise Departmental Officers
and
Service Tax Departmental Officers.
It has automated the major processes of
Central Excise and Service Tax - registration, returns, accounting, refunds,
dispute resolution, audit, provisional assessment, exports, claims, intimations
and permissions. It is divided into the following modules:
1.
Access
Control of Users (
2.
Registration
(
3.
Returns
(RET): Electronic filing of Central Excise & Service Tax Returns
4.
5.
Refund
(
6.
Provisional
Assessment (PRA): Electronic filing of request for provisional assessment and
its processing by the departmental officers.
7.
Assessee
Running Account
8.
Dispute
Settlement Resolution (DSR): Show Cause Notices, Personal Hearing Memos,
Adjudication Orders, Appellate and related processes.
9.
Audit
Module
10. Export Module for processing export
related documents
1. Reduce Physical Interface with the Department
2. Save Time
3. Reduce Paper Work
4. Online Registration and Amendment of
Registration Details
5. Electronic filing of all documents such as
applications for registration, returns [On-line and off-line downloadable
versions of ER 1,2,3,4,5,6, Dealer Return, and ST3], claims, permissions and
intimations; provisional assessment request, export-related documents, refund
request
6. System-generated E-Acknowledgement
7. Online tracking of the status of selected
documents
8. Online view facility to see selected
documents
9. Internal messaging system on business-related
matters
IV. Registration Process:
To transact business
on ACES a user has to first register himself/herself with ACES through a
process called ‘Registration with ACES’. This registration is not a statutory
registration as envisaged in Acts/Rules governing Central Excise and Service
Tax but helps the application in recognizing the bonafide
users. Described below are steps for taking registration by a new assessee, existing assessee, non-assessee and a Large Tax Payer Unit (LTU).
(a) New Assessee
1. The user needs to log onto the system,
through internet at http://www.aces.gov.in
2. He/she chooses the Central Excise/Service Tax
button from the panel appearing on the left of the webpage.
3. Clicks the button “New Users Click here to
Register with ACES” in the Log-in screen that appears after clicking Central
Excise/Service Tax button.
4. Fills in and submits the form “Registration
with ACES”, by furnishing a self-chosen user ID and e-mail ID. User ID, once
chosen is final and cannot be changed by the assessee
in future.
5. The system will check for availability of the
chosen User ID and then generate a password and send it by e-mail, mentioned by
him/her in the Form.
6. ACES provides assistance of ‘Know your
location code’ for choosing correct jurisdictional office.
7. The user then re-logs-in and proceeds with
the statutory registration with Central Excise/Service Tax, by filling-in the
appropriate Form namely A-1, A-2 or ST-1 etc. by clicking the “Reg” link in the Menu bar that appears on the top of the
screen. For security reasons, the password should be changed immediately.
8. The system instantaneously generates an
acknowledgement number after which the registration request goes to the
jurisdictional Assistant or Deputy Commissioner (AC/DC). Depending on the
instructions in force, assessees may be required to
submit certain documents to the department for verification. After due
processing, the AC/DC, in case of Central Excise and Superintendent
/Commissioner (for centralized registration only), in case of Service Tax,
generates Registration Certificate (RC) and a message to this effect is sent to
the assessees electronically. The assessee
can view this and take a print-out of this.
9. Depending on the option chosen by the assessee, the signed copy of the RC can be sent by post or
can be collected by assessee in person.
10. While submitting registration form, if the assessee makes a mistake in choosing a wrong jurisdiction (Commissionerate/Division/ Range), ACES provides a facility
to the AC/DC to forward the application to the correct jurisdictional officer
to issue registration and a message to this effect is sent to the assessee for information.
11. The registration number will be same as the
current 15-digit format with minor change such as
For-PAN based Assessees
1-10 digits – PAN of the Assessee
11-12 digits–EM (Excise Manufacturer),
ED (Excise Dealer), SD (Service Tax)
13-15–Systems generated alphanumeric
serial number
For non-PAN based assessees
1-4 digits TEMP
5-10 Systems generated alpha numeric
number
11-12 EM (Excise Manufacturer) or ED
(Excise Dealer), SD (Service Tax)
13-15–Systems generated alphanumeric
serial number
(b) Existing Assessee
1.
The
existing assessees will not have to take fresh
registrations. They will have to only register with the ACES application. This
can be done in the following manner :
ACES application will automatically
send mails to the e-mail IDs of the assessee, as
available in the existing registration data base, indicating a TPIN number, and
password. The mail will contain a hyperlink to the website.
Assessee clicks on the hyperlink and is taken
to ACES application
Assessee submits the form after filling the
requisite information including the password provided in the e-mail, a new User
ID and new password. User ID, once chosen is final and cannot be changed by the
assessee in future.
On successful registration with ACES,
the assessee can transact business through ACES.
2.
Existing
assessees should note that they should register with
ACES by following the procedure at (1) above and they should not register with
ACES through the direct method, meant for new assessees,
as discussed under (a) above. They should also not fill-in registration forms
again as it will lead to allotment of new registration numbers by the system.
3.
Assessees
should ensure that their contact details in the department’s registration data
base are updated to include their valid and current e-mail ids, otherwise they
will not receive any such mail. Those assessees who
have not yet furnished their email IDs to the department or even after
furnishing the ID have not received the TPIN mail from ACES are advised to
contact the jurisdictional Range Officers or LTU Client Executives and furnish
their email IDs in writing. The officer will thereafter incorporate the email
ID in the ACES registration database of the assessee
and arrange to send the TPIN mail to the assessee’s
email ID.
(c) Non-Assessee
1.
This
category of registration is given in ACES to any individual, firm or company
which requires to transact with the Central Excise or Service Tax Department,
though not an assessee such as (a) merchant exporter,
(b) co-noticee, (c) refund applicant, (d) persons who
have failed to obtain CE/ST registration as required under the law and against
whom the Department has initiated proceedings and (e) persons who are required
to tender any payment under CE/ST Act /Rules. The Non-assessees
are not required to file any tax returns.
2.
Where
such persons desire to seek non-assessee registration
they follow same steps as in case of new assessee
except that while choosing the registration form in step (vii) they have to
choose and fill in the Non-assessee form.
3.
In
case the assessee is taking such registration for
claiming any refund or rebate it is mandatory to furnish his/her valid PAN.
4.
A
Non-assessee registration can also be done by the
designated officer of the Commissionerate, on behalf
of the non-assessee.
(d) Large Tax Payer Unit (LTU) Assessee/Client
1. The consent form will have to be
submitted manually by the New LTU assessees to the
jurisdictional LTU office which will be processed off line
2.
The
approved consent form will be uploaded by the competent officer of the Group
LTU (GLTU) into ACES
3.
Any
new unit of an existing LTU, which applies for registration with ACES will be
automatically attached with the LTU Commissionerate
based upon PAN details in the registration form
4.
As
soon as the new or existing unit is attached with the LTU Commissionerate,
a suitable intimation will be automatically sent by the ACES to the existing
jurisdictional Commissionerate and the pending items
of work will be transferred to the LTU Commissionerate
5.
For
existing LTU assessees, the process of registration
is same as explained in Sub Para (b) above.
IMPORTANT:
i. The user ID once
selected will be permanent and cannot be changed. However, it is desirable to frequently
change passwords
ii. The User ID should be of 6-12 alphanumeric
characters, no special character such as !@#$%*&( )+ or spaces except
underscore ‘-‘ shall be allowed.
iii. New assessee seeking
registrations in Central Excise and Service Tax will also submit to the
jurisdictional Range officer, a printout of the application form submitted
online duly signed by the authorized signatory along with required documents.
iv. Assessees should
note that the e-mail ID is furnished to the department in writing, and they
will be responsible for all communications to and from this email ID.
Currently, ACES provides for communication to one email ID only. After
registration with the ACES, assessees, on their own,
can modify their registration details online, including their e-mail ID.
v. In the interest of security and data
protection, assessees are advised to change their
passwords regularly and not to share it with unauthorized persons. In case of
any dispute, the person whose user ID and Password has been used to access the
application will be held liable for the action and any other consequences.
V. E-filing of Returns
The
assesses can electronically file statutory returns of Central Excise and Service
Tax by choosing one of the two facilities being offered by the department at
present: (a) they can file it online, or (b) download the off-line return
utilities which can be filled-in off-line and uploaded to the system through
the internet.
a. Steps for preparing and filing returns
(i) Returns can be
prepared and filed on line by selecting the ‘File Return’ option under RET
module after logging into the ACES.
(ii) All validations are thrown up during the
preparation of the return in this mode and the status of the return filed using
the online mode is instantaneously shown by ACES.
(iii) Returns can also be prepared and filed
off-line. Assessee downloads the Offline return
preparation utility available at http://www.aces.gov.in (Under Download)
(iv) Prepares the return offline using this
utility. The return preparation utility contains preliminary validations which
are thrown up by the utility from time to time.
(v) Assessee logs in
using the User ID and password.
(vi) Selects RET from the main menu and uploads
the return. Instructions for using the offline utilities are given in detail in
the Help section, under ‘Download’ link and assessees
are advised to follow them.
(vii) Returns uploaded through this procedure are
validated by the ACES before acceptance into the system which may take up to
one business day. Assessee can track the status of
the return by selecting the appropriate option in the RET sub menu. The status
will appear as “uploaded” meaning under process by ACES, “Filed” meaning
successfully accepted by the system or “Rejected” meaning the ACES has rejected
the return due to validation error. The rejected returns can be resubmitted
after corrections.
(viii) Once the Central Excise returns are filed online
in ACES or uploaded to the system using the off-line utility, the same can not
be modified or cancelled by the assessee. The Service
Tax returns, however, can be modified once as per rules up to 90 days from the
date of filing the initial return.
(ix) Self-assessed CE returns, after scrutiny by
the competent officer, may result into modification. Both the ‘Original’ and
the ‘Reviewed’ return can be viewed by the assessee
online.
b. Using XML Schema for filing Dealers Return
Currently,
the ACES Application allows on-line filing of Quarterly Returns by the
Registered Dealers accessing the site www.aces.gov.in by using the excel utility. Some assesses
who use their own software application in their offices find the process of
manual entry of data in the excel format of Returns as a time consuming and
avoidable exercise. A new feature of XML schema has now been introduced. Now
using the schema, assessees, after making
necessary modifications in their own software application, can generate their
return from their application. Below mentioned steps elaborate the process to
prepare, validate and upload the Dealer’s Return.
Steps
to prepare the XML
Step
1: ACES application accepts the return in XML format. Prepare the Dealer return
XML and validate it against the schema ACES_DLR.xsd provided.
Step
2: Login to the ACES application and upload the XML for processing. XML will be
again validated against same XSD again before processing.
XML
File only will be considered valid if it satisfies the requirements of the
schema (predefined XSD) with which it has been associated. These requirements
typically include such constraints as:
Elements
and attributes that must/may be included, and their permitted structure
The
structure as specified by regular expression syntax
Instructions
for using the schema are given in detail in the Help section, under ‘Download’
link. Assessees are advised to follow them.
c. Filing of Returns and other documents
through the ACES Certified Facilitation Centres (CFCs)
Very
soon, CBEC will be setting up ACES Certified Facilitation Centres (CFCs) with
the help of professional bodies like Institute of Chartered Accountants of India
(ICAI), Institute of Cost and Works Accountants of India (ICWAI) etc. These CFCc will provide a host of services to the assessees such as digitization of paper documents like
returns etc. and uploading the same to ACES. Assessees
requiring the services of the CFCs may be required to pay service fees to the
CFCs. CBEC will approve the maximum rates at which CFCs can charge their
customers for the services rendered by them. For this purpose, assessees are required to write to the department
authorizing one of the CFCs, from the approved list, to work in ACES on their
behalf. They have to furnish the name and other details of the CFCs, including
the registration No issued by the ICAI/ICWAI etc. At any given time, one assessee can authorize one CFC, while one CFC can provide
services to more than one assessee throughout India.
In case the assessee wants to withdraw the
authorization, it can do so by intimating the department. However, an assessee will be held liable for all actions of omission or
commission of the CFC, during the period they are authorized by him/her to work
in ACES.
d. Validation of the entries made while
filling return
1.
At
the time of making entry in the electronic format of the relevant return, the
software does some preliminary validation for ensuring correctness of data,
either concurrently or at the time of saving / submitting the return. This
validation process is automated. The user is prompted by the application
software to correct the particulars entered wherever required. In respect of
certain entries, although the application alerts the assessee
about any entry found erroneous or inconsistent, as per the automated
validation process, the assessee is still allowed to
proceed further to complete data entry of the return and finally submit it
electronically. But in some cases the assessees are
not allowed to proceed further unless the error indicated is corrected.
2.
A
return filed electronically is subject to automatic verification process by the
application and defective returns are marked to the departmental officer for
review and correction. While reviewing the return the officer may seek some
clarification from the assessee, call for some
information, records or documents which should be furnished by the assessee. In case of review and correction of returns by
the departmental officers, assesses will receive a message from the application
and they can log in to the application to view the reviewed returns online.
3.
Returns,
captured off-line using the Downloadable utility and uploaded later on, are
further subjected to certain validation checks. Processing of uploaded returns,
using the off-line versions, is done at the end of one business day and the
status can be viewed by the assessees under the ‘VIEW
STATUS’ link under ‘RET’ module. Status is described as ‘UPLOADED’, ‘FILED’ or
‘REJECTED’ and they denote as follows:
UPLOADED
denotes that return is uploaded and under processing (assessees
are advised to view the status after the end of a business day).
FILED
denotes that uploaded return is accepted by system.
REJECTED
denotes that return is rejected due to errors. (The assessees
are required to correct the return and upload it again.)
4.
There
is no provision in ACES application to allow assessees
to make corrections to the returns filed by them. Once the return is accepted
by the system as successfully ‘filed’, no modification can be made by the assessee. However, if the return is rejected, the assessee can correct the errors and upload it again. The assessees are, therefore, advised to take utmost care while
fill-in in the returns. They may, however, bring it to the notice of the
departmental officers.
e. Acknowledgement of E-Filing of the return
In
the case of a Central Excise or service Tax return filed on-line, ACES
application software acknowledges it by displaying an Acknowledgement message.
A unique document reference number is generated which consist of 15-digit
registration number of the assessee, name of the
return filed, the period for which return is filed etc. This is also
automatically communicated to the email id of the assessee
by the application. In the case of an uploaded Central Excise return, using
offline utility, similar acknowledgement is generated and sent after the
acceptance of the return by the system as a valid return i.e. when the status
changes to ‘FILED’.
f. Class of Assessees
for whom e-filing of returns and e-payment is mandatory with effect from 1st
April, 2010:
1.
In
terms of Notification No 04/2010-Central Excise (N.T.) dated the 19th February,
2010, an assessee, who has paid total duty of rupees
ten lakhs or more including the amount of duty paid by utilization of CENVAT
credit in the preceding financial year, is required to file the monthly or
quarterly return, as the case may be, electronically, under sub-rule (1) of
Rule 12 of the Central Excise Rules, 2002 and deposit the duty electronically
through internet banking under sub-rule (1) of Rule 8 of the Central Excise
Rules, 2002.
2.
Similarly,
in terms of Notification No. 01/2010 – Service Tax dated the 19th February,
2010, an assessee who has paid a total Service Tax of
rupees ten lakhs or more including the amount paid by utilization of CENVAT
credit, in the preceding financial year, is required to file the return electronically
under sub-rule (2) of Rule 7 of the Service Tax Rules, 1994 and deposit the
service Tax liable to be paid by him electronically, through internet banking
under sub-rule (2) of Rule 6 of the Service Tax Rules, 1994.
3.
The
earlier facility of e-filing on the website (http://exciseandservicetax.nic.in), as provided in the CBEC Circular
No.791/24/2004-CX. Dated 1.6.2004 is no more available and the assessees are required to file their returns online or by
uploading the downloadable off-line return utilities to the new ACES website (http://www.aces.gov.in). Data structure for writing programmes to cull out the required return data (currently
available for Dealer return) from the assessees’s
computers in XML format has also been provided. Such schema for ER 2 and ER 1
returns will be published in due course. For complete details and instructions,
assessees can visit the aforesaid website. Assessees who are required to or opted to file returns
electronically but are unable to file electronically, for any technical
difficulty in filing the returns, on account of difficulties at the
department’s end viz. server/application is down or due to some defect in the
software, should file their returns manually within the due date.
g. e-payment
1.
For
e-payment, assessees should open a net banking
account with one of the authorized banks (currently there are 28 banks, list of
which is available on the EASIEST (Electronic Accounting System in Excise and
service Tax) website of CBEC, maintained by NSDL (https://cbec.nsdl.com/EST/). Payment through ICICI Bank, HDFC
Bank and Axis Bank can be done by assesses for select Commissionerates
only, list of which is published in the aforesaid EASIEST website. Payment
through all other authorized banks can be made for all Commissionerates.
2.
For
effecting payment, assessees can access the ACES
website (http://www.aces.gov.in/) and click on the e-payment link that
will take them to the EASIEST portal (https://cbec.nsdl.com/EST/) or they can directly visit the
EASIEST portal.
3.
Procedure
for e-Payment:
i.
To
pay Excise Duty and Service Tax online, the assessee
has to enter the 15 digit Assessee Code allotted by
the department under erstwhile SACER/SAPS or the current application ACES.
ii.
There
will be an online check on the validity of the Assessee
Code entered.
iii.
If
the Assessee code is valid, then corresponding assessee details like name, address, Commissionerate
Code etc. as present in the Assessee Code Master will
be displayed.
iv.
Based
on the Assessee Code, the duty / tax i.e. Central
Excise duty or Service Tax to be paid will be automatically selected.
v.
The assessee is required to select the type of duty / tax to be
paid by clicking on Select Accounting Codes for Excise or Select Accounting
Codes for Service Tax, depending on the type of duty / tax to be paid.
vi.
At a
time the assessee can select up to six Accounting
Codes.
vii.
The assessee should also select the bank through which payment
is to be made.
viii. On submission of data entered, a
confirmation screen will be displayed. If the taxpayer confirms the data
entered in the screen, it will be directed to the net-banking site of the bank
selected.
ix.
The
taxpayer will login to the net-banking site with the user id/ password,
provided by the bank for net-banking purpose, and will enter payment details at
the bank site.
x.
On
successful payment, a challan counterfoil will be
displayed containing
h. Responsibility of the Assessee
1.
It
is the legal responsibility of the assessees, who are
required to file returns, to file it within the due date as prescribed under
law. The electronic filing of returns is mandatory for select class of Central
Excise and Service Tax assessees, as mentioned in
Notification No 04/2010-Central Excise (N.T.) dated the 19th February, 2010,
and Notification No. 01/2010 – Service Tax dated the 19th February, 2010
respectively. Other assessees can also use ACES and
file their returns electronically. It may, however, be noted that merely
uploading the returns will not be considered as returns having been filed with
the department. A return will be considered as filed, when the same is
successfully accepted by the application as ‘Filed’ and the relevant date for
determining the date of filing of return will be the date of uploading of such
successfully ‘filed’ returns. In case a return is ‘rejected’ by the
application, the date of uploading of the rejected return will not be
considered as the date of filing, rather the date of uploading of the
successfully ‘filed’, return (after the assessee
carries out necessary corrections and uploads it again) will be considered as
the actual date of filing.
2.
In
case the assessee experiences any difficulty in
transacting in ACES such as filing of return, the assessees
may lodge a complaint with the ACES Service Desk or the department by e-mail
and/or by telephone, details of which are given below and obtain a ticket no.
as an acknowledgement from the department. However, mere lodging of complaints
with the ACES service desk will not be a valid ground to justify late filing of
returns. If the difficulty is not on account of problems at the assessee’s end, and can be clearly attributed to the
department’s IT infrastructure such as problems in accessing CBEC’s ACES
application due to server, network or application being down, proportionate
time will be deducted from the date of uploading of successfully ‘filed’
returns to ascertain the actual date and time of filing of the return. Since
the department maintains logs of such technical failures, in case of any
dispute, the decision of the department will be final.
VI. Digital Signatures
The
ACES application is designed to accept digitally signed documents. However, in
the beginning this functionality is not going to be activated. Pending its
activation the electronic returns will be filed into ACES without digital
signatures. Hence, wherever the returns are submitted through ACES there will
not be any requirement to submit signed hard copy separately.
To
use ACES following systems requirements are recommended:
Processor:
Intel Pentium
Web
Browser: IE 6.0 and above, Netscape 6.2 and above
MS
Excel 2003 and above for using offline utilities
Sound
Card, Speakers/Headphones, Colour Monitor for using
Learning Management Systems (
VIII. Help for Assessees
CBEC
has set up a Service Desk with National toll-free No. 1800 425 4251, which can
be accessed by between 9 AM to 7 PM on all working days (Monday to Friday).
Besides, e-mails can be sent to aces.servicedesk@icegate.gov.in. All the
calls/e-mails will be issued a unique ticket number, which will be attended to
by the Service Desk agents for appropriate response.
A Learning
Management Software (