Service tax query!!

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Querist : Anonymous

Querist : Anonymous (Querist)

19 October 2011 In one of the assesse, challan is deposited in different code as applicable to Service, What to do??

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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20 October 2011 use different challan for each service

Querist : Anonymous

Querist : Anonymous (Querist)

21 October 2011 Now What to do in case,Its already deposited as mentioned????

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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24 July 2025 This is a common issue — depositing **service tax challan under the wrong service code**. Let me explain what it means and how to fix it.

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### 🧾 **Issue:**

You deposited service tax **under the wrong accounting code** (i.e., wrong service category). This can lead to mismatch in department records when filing ST-3 or during assessment/audit.

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### ✅ **What You Should Do Now:**

#### 1. **Write a Letter to Jurisdictional Superintendent/AC/DC:**

Prepare a formal letter stating:

* The challan number, date, and amount.
* The **wrong code used** and the **correct service code**.
* Reason for the error (e.g., clerical mistake).
* Request for **rectification or adjustment** of the challan.

Attach:

* Copy of the challan (GAR-7 or NEFT/online receipt).
* Copy of ST-3 return (if filed).
* Any correspondence or calculation sheet.

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#### 2. **Correction at Department Level:**

* In most cases, the **Superintendent of Central Excise/Service Tax** has the power to **allow correction** of the code internally.
* They will treat it as a **valid payment** for the correct service once satisfied.

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#### 3. **Use of the Wrong Code Does Not Mean Tax Is Unpaid:**

> ✅ The **Service Tax is considered paid**, as long as:

* The payment is made under your **correct registration number**, and
* The **amount is correct**.

However, rectification is necessary to **match it in your ST-3 return** and avoid any **show-cause notices or demands**.

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### 🛑 Don't:

* Don’t try to ignore the error — it will **cause mismatch** in filing and audits.
* Don’t make a second payment under the correct code (unless specifically required) — just **seek reclassification**.

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### 📌 Summary:

| Step | Action |
| ---- | --------------------------------------------------------- |
| 1 | Write to department requesting correction of service code |
| 2 | Attach challan copy and service details |
| 3 | Follow up for acknowledgment and correction |
| 4 | Reflect the corrected service in your ST-3 return |

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Would you like a **sample letter format** for requesting service code correction?

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