Service tax accounting code

This query is : Resolved

manisha (Querist)
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14 October 2012 Hello sir.I am working for a manpower recruitment co. I have paid the total ser.tax due in last weak of September.12 under accounting code 60,as per the previous practice.Now my query is , will the accounting code will be valid or not, since the new accounting codes are being introduce from July2012? and whether the the 75% of the service tax amount paid extra(as per reverse tax mechanism, we are suppose to pay 25%)can be claim for refund? _Thanks._manisha

CA Suresh Jain

CA Suresh Jain (Expert)
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14 October 2012 1. There is a difference in manpower recruitment service and manpower supply service. The recruitment service is not a man power supply service.
2. The RCM is applicable to man power supply service and not to man power recruitment service.
3. There tax paid by you is correct.
4. so far paying the service tax under wrong code is conern please mention this fact in your return and also inform to the concern range officer in writing

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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14 October 2012 The matter may be sorted out with PAO through the jurisdictional superintendent.
Please refer Circular 58/7/2003 dated 20/05/2003.

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CA Suresh Jain

CA Suresh Jain (Expert)
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14 October 2012 The content of the circular is as under :-

Service tax payment using wrong accounting code amounts to payment of tax

Circular No. 58/7/2003-S.T., dated 20-5-2003

F.No. 159/2/2003-CX-4

Government of India

Ministry of Finance (Department of Revenue)

Central Board of Excise & Customs, New Delhi

Subject : Using a wrong Accounting Code for payment of Service Tax clarification - Regarding.

I am directed to say that a representation had been received by the Board raising apprehensions regarding using a wrong Accounting Code for payment of Service Tax. Whether, this amounts to having paid the Service Tax or not.

2. The Board has examined the issue. In this connection, I am directed to clarify that the assessee need not be asked to pay the service tax again. In such cases the matter should be sorted with the P.A.O. As regards to the cases where the assesssee was asked to pay service tax again, the amount thus paid may be refunded by the concerned divisional Asstt. Commissioner/Deputy Commissioner.

3. The field formations may suitably be informed.

4. Trade Notice may be issued for the information of the trade.

5. The receipt of this Circular may kindly be acknowledged.

6. Hindi Version will follow.