TaxTMI 
TaxTMI 
ACCOUNTING CODE FOR SERVICE TAX
18 Mar 2013 
3 Replies 
3284 Views Asked by
Interest on delayed service tax payments attracts prescribed interest rates and penalty may follow depending on facts.
Service Tax on Manpower Supply requires registered manufacturers obtaining contract manpower to account under the manpower service classification or use the residual category where no specific category applies; appropriate accounting code and registration amendment are necessary. Delayed payment attracts statutory interest at the prescribed rate, with a reduced rate available for smaller turnover, and payment of tax with interest before issuance of a show cause notice may affect penalty exposure, though penalty liability depends on case facts. (AI Summary)
Service Tax on Manpower Supply requires registered manufacturers obtaining contract manpower to account under the manpower service classification or use the residual category where no specific category applies; appropriate accounting code and registration amendment are necessary. Delayed payment attracts statutory interest at the prescribed rate, with a reduced rate available for smaller turnover, and payment of tax with interest before issuance of a show cause notice may affect penalty exposure, though penalty liability depends on case facts. (AI Summary)
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?