Centre mulls e-transfer of tax payments

The government is considering utilising electronic funds transfer mechanism for instant transfer of customs payments that importers make at banks to its coffers.

For this, the customs department is exploring the possibility of utilising the interconnectivity that banks are establishing with the Reserve Bank of India (Nagpur), where the Central government's revenue account is maintained.

The interconnectivity is being established for instant remittance of advance tax payments. It will be operational from February 1.

"We had deliberations with the RBI's high power committee on utilising the electronic funds transfer facility for transfer of customs payments that are made at banks," said A K Raha, director general (systems), Central Board of Excise and Customs, at a function at the Indian Merchants' Chamber.

The department is yet to decide as to how many banks to involve, he added.

Raha said that from April 1 the self-assessment facility will be introduced by the customs department. The computerised system at the department will have a risk management module that will indicate the goods that need examination and valuation.

This system will help green channel clearance for 45 per cent of the goods at seaports as against 15 per cent now and 65 per cent of the goods at airports as against 30 per cent now.

On the central excise side, 'e-filing' will be operationalised from April 1. This will help in instant registration, refunds/ tracking of claims, etc.

Raha pointed out though 'the e-filing' facility was provided to the services sector hardly anybody used it. "We are mulling whether we should make this facility mandatory for the organised sector and optional for small and medium enterprises," he said.

Further, digital signature for security of revenue transactions carried out via the Internet will be introduced in June, Raha said.