New Accounting Code

[Mridul Sethi]

Sir,

Pls let me clear that new service tax accounting code 00441089 under the negative list approach is related to all services(i.e.old + new) or it is related to only new services & the old specific service code will exist.

 

Regards,

Mridul Sethi

[YAGAY and SUN]

Please go through the note to Circular No. 161-ST/ 06-7-2012,F.No.341/21/2012-TRU in this regard which states as follows:-

NOTE: (i) service specific accounting codes will  also continue to operate, side by side, for accounting of service tax  pertaining to the past period (meaning, for the period prior to 1^st July, 2012); (ii) Primary Education Cess on all taxable services will be booked under 00440298 and Secondary and Higher Education Cess on all taxable services will be booked under 00440426; (iii) a new sub-head has been created for payment of “penalty”; the sub-head “other receipts” is meant only for payment of interest etc. leviable on delayed payment of service tax; (iv) the sub-head “deduct refunds” is not to be used by the assessees, as it is meant for use by the Revenue/Commissionerates while allowing refund of tax.

It means that for past period service specific codes will be used and from 01-07-2012 on wards, New Accounting code will be used as mentioned in the said circular.

AI Summary

Service tax accounting code change: unified code applies after transition and past-period service-specific codes remain, cess and sub-heads clarified. Service-specific accounting codes continue to be used for accounting of service tax for periods prior to the transition, while from the transition date the new unified accounting code applies for taxable services. Specific sub-head allocations are prescribed: Primary Education Cess and Secondary and Higher Education Cess to be booked under designated sub-heads; a new sub-head for penalty; 'other receipts' for interest on delayed payment; and 'deduct refunds' reserved for Revenue/Commissionerates.