What changed
The Government of India fixed April 15, 2011 as the closure date for residual March 2011 transactions, replacing the previous year's procedure. Agency banks are now required to implement special messenger or courier arrangements from the second fortnight of March 2011 for all receiving branches, including those not locally situated, to pass challans/scrolls to Nodal/Focal Point branches.
What it means for you
Banks must ensure that all government tax collections and payments made up to March 31, 2011 are recorded in the current financial year, not mixed with April transactions. Nodal/Focal Point branches must prepare separate scrolls for March residual transactions and April transactions during the first 15 days of April 2011, and clear any arrears before March 15, 2011.
What you must do
- Instruct all receiving branches to implement special messenger or courier arrangements from the second fortnight of March 2011 for timely transmission of challans/scrolls to Nodal/Focal Point branches.
- Ensure all arrears in government collections are cleared before March 15, 2011.
- Direct Nodal/Focal Point branches to prepare separate scrolls for March residual transactions and April transactions during April 1-15, 2011, without mixing them.
- Advise branches handling Non-Civil Ministries (Defence, Posts, Railways, Telecommunications) to follow the same special reporting procedure.
Who it affects
All agency banks handling government tax collections, Receiving branches of agency banks, Nodal/Focal Point branches of agency banks, Branches handling Non-Civil Ministries transactions
What is the deadline for clearing arrears in government collections?
All arrears must be cleared before March 15, 2011, as per the circular.
How should Nodal/Focal Point branches handle transactions in early April 2011?
From April 1, 2011, they must segregate March 2011 scrolls/challans daily and prepare separate main scrolls for March residual transactions, distinct from April transactions, until April 15, 2011.
Does this procedure apply to Non-Civil Ministries like Defence and Railways?
Yes, the same special arrangements for reporting March transactions and the procedure for April reporting apply to Non-Civil Ministries transactions.