Wednesday, October 3, 2012

Service Tax Update

1)      Accounting Codes for Payment of Service Tax

ServiceTax Circular No. 161/12/2012 dated 6th July, 2012, has specified the Accounting Codes for the purpose of payment of Service Tax under the Negative List approach, with effect from 1st July, 2012.

The new Accounting Codes are as follows:
Name of Services
Accounting Codes
Tax Collection
Other Receipts*
Deduct refunds***
All Taxable Services
Primary Education Cess
S.H. Education Cess
It may be, however, noted that service specific accounting codes will also continue to operate, side by side, for accounting of service tax pertaining to the past period i.e. for the period prior to 1st July, 2012.

*The sub-head “other receipts” is meant only for payment of interest, etc. leviable on delayed payment of service tax.

**A new sub-head has been created for payment of “penalty”.

***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.

2)      Filing of ST-3 only for the period from 1st April, 2012 to 30th June, 2012

Due to increase in complexity of preparing half yearly Service Tax Return for the period from 1st April, 2012 to 30th September, 2012 because of applicability of the new Negative List Service Tax regime w.e.f. 1st July, 2012, the Service Tax Department has issued Instruction No. F. No. 137/22/2012 dated 28th September, 2012, according to which:

Assessees have to provide data only for the period 01.04.2012 to 30.06.2012 in the first half yearly return which is due on 25.10.2012. The data for the period from 01.07.2012 to 30.09.2012 should not be filed. Any data filed for the period from 01.07.2012 to 30.09.2012 will be rejected in the aforementioned return.

Data for the period 01.07.2012 to 30.09.2012 will have to be furnished in a return in a revised format. The revised format of the return and the last date for filing it will be indicated separately.

The same has also been mentioned vide Service Tax Notification No. 47/2012 dated 28thSeptember, 2012.