Accounting codes have been changed under Negative List

Accounting codes have been changed under Negative List

With the advent of the Negative List-based taxation approach under service tax, will the old accounting codes under which the payment of service tax was being made continue? For example, we were paying service tax on clearing and forwarding services under 00440045? Is there any change in accounting codes now? — Jiten Nagda The negative list-based comprehensive approach to taxation of services came into effect from July 1, 2012. For payment of service tax under the new approach, a new minor head — ‘All Taxable Services’— has been allotted under the major head, “0044-Service Tax”. Accounting codes for the purpose of payment of service tax under the negative list approach, with effect from July 1, 2012, are showed in the table. 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 July 1, 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.