Reporting and accounting of taxes - Special Arrangements - Financial Year 2006-2007 – RBI instructions
For the Financial Year 2006-07 the date of closure of Residual Transactions for the month of March 2007 be fixed as April 16, 2007 (Monday) and the Banks are instructed to
1. introduce special messenger arrangements at local receiving branches from the second fortnight of March 2007.
2. ensure that collections made on behalf of Government towards the end of March are accounted for in the same financial year.
3. ensure that arrears, if any, are cleared before 15 March 2007.
Further
++ the Nodal/Focal Point branches will be required to prepare separate sets of scrolls, one pertaining to March Residual Transactions and another for April transactions during the first 16 days of April 2007.
++ The Nodal/Focal Point branches should also ensure that the accounts for all transactions (revenues/tax collections/payments) are effected at the receiving branches upto 31st March 2007 in the accounts for the current financial year itself and are not mixed up with the transactions of April 2007.
++ Also, while reporting transactions upto 16th April 2007, the transactions of April 2007 should not be mixed up with ' Residual March transactions. '
Can the RBI or the Finance Minister do something about the accounting gimmicks perpetuated by the Commissionerates in showing next year’s revenue in the current year?