ACCOUNTING CODE FOR SERVICE TAX

[SANJEEV JADHAV]

We are the registered manufacturer under excise and we are getting man power services from various contractors. W.E. F 1.7.2012 we have to pay 75% Service tax on man power supply. Can you please explain accounting code for paying service tax relates to man power supply. Also please explain what will be interest for delayed payment of service tax. i.e 18% or 15%. Secondly we are paying service tax voluntariry before issue of notice from the department. Can we have to pay penalty?

AI Summary

Manufacturer Inquires About Service Tax Codes and Interest; 18% General Rate, Reduced for Lower Turnovers, Voluntary Payment May Avoid Penalties A manufacturer registered under excise sought advice on service tax accounting codes for manpower services and the applicable interest rates for delayed payments. They also inquired about penalties for voluntary tax payment before departmental notice. Respondents clarified that the general interest rate is 18%, reduced to 15% for turnovers below Rs. 60 lakhs. It was advised to use service-specific accounting codes, with manpower services coded as 00440060. Penalties may apply depending on case specifics, but paying tax with interest before a show-cause notice might prevent penalty imposition if justified reasons are presented to the department.