St paid in wrong accounting code
This query is : Resolved
04 April 2013
Will the assess be liable to pay further Service Tax if the service tax has been paid with the wrong accounting code? If so, please let me know.
What should be the process for it's correction
pls guied me.
What should be the process for it's correction
pls guied me.
04 April 2013
Inform the Jurisdictional superintendent vide the circular reference given by me in
https://www.caclubindia.com/experts/wrong-a-c-no-service-tax-challan-263495.asp#.UV1tETcTCVE
No need to pay again.
https://www.caclubindia.com/experts/wrong-a-c-no-service-tax-challan-263495.asp#.UV1tETcTCVE
No need to pay again.
04 April 2013
But mentioned circular has been withdrawn by circular No. 97/8/2007 ST dated 23rd August, 2007.
25 July 2025
Great question about **Service Tax paid under a wrong accounting code**!
---
## ✅ Liability if ST paid under wrong accounting code?
**Generally, no additional service tax is payable** just because of using a wrong accounting code in the payment challan. The key is that the **correct amount of service tax has been paid** within the due date.
### Why?
* The accounting code is for **department’s internal classification**, not for determining tax liability.
* As long as the **amount of ST paid is correct and timely**, the payment is valid.
---
## ⚠️ Important Update:
You mentioned that the older circular allowing this correction (Circular No. 97/8/2007) was **withdrawn**.
* **Current position:**
You need to **inform the jurisdictional Superintendent** of the mistake and request rectification.
---
## ✅ Recommended Process to Correct:
1. **Write a letter/email to jurisdictional Superintendent of Central Excise / Service Tax** informing about the mistake.
* Mention the **challan details** (challan number, date, amount paid).
* Clarify the **incorrect accounting code used** and the **correct code**.
* Request the department to **rectify the classification in their records**.
2. **Keep proof of communication** for your records.
3. **No fresh payment is needed**, as long as the amount is correct and payment was made on time.
4. If you file **Service Tax returns (ST-3)**, mention the correction in your next return or attach a corrigendum.
---
## ✅ What if you do not inform?
* Generally, the department may adjust the credit or records as per the amount paid.
* However, **to avoid future disputes or mismatch in records**, proactive communication is best.
---
## Summary Table:
| Issue | Suggestion |
| ----------------------------------- | ------------------------------------------------- |
| ST paid under wrong accounting code | Inform jurisdictional Superintendent with details |
| Fresh payment needed? | No, if correct amount paid on time |
| Circular 97/8/2007 status | Withdrawn, follow current dept. procedure |
| Keep proof | Yes, keep all communication records |
---
If you want, I can help draft a **sample letter/email** to your jurisdictional officer for this correction!
---
## ✅ Liability if ST paid under wrong accounting code?
**Generally, no additional service tax is payable** just because of using a wrong accounting code in the payment challan. The key is that the **correct amount of service tax has been paid** within the due date.
### Why?
* The accounting code is for **department’s internal classification**, not for determining tax liability.
* As long as the **amount of ST paid is correct and timely**, the payment is valid.
---
## ⚠️ Important Update:
You mentioned that the older circular allowing this correction (Circular No. 97/8/2007) was **withdrawn**.
* **Current position:**
You need to **inform the jurisdictional Superintendent** of the mistake and request rectification.
---
## ✅ Recommended Process to Correct:
1. **Write a letter/email to jurisdictional Superintendent of Central Excise / Service Tax** informing about the mistake.
* Mention the **challan details** (challan number, date, amount paid).
* Clarify the **incorrect accounting code used** and the **correct code**.
* Request the department to **rectify the classification in their records**.
2. **Keep proof of communication** for your records.
3. **No fresh payment is needed**, as long as the amount is correct and payment was made on time.
4. If you file **Service Tax returns (ST-3)**, mention the correction in your next return or attach a corrigendum.
---
## ✅ What if you do not inform?
* Generally, the department may adjust the credit or records as per the amount paid.
* However, **to avoid future disputes or mismatch in records**, proactive communication is best.
---
## Summary Table:
| Issue | Suggestion |
| ----------------------------------- | ------------------------------------------------- |
| ST paid under wrong accounting code | Inform jurisdictional Superintendent with details |
| Fresh payment needed? | No, if correct amount paid on time |
| Circular 97/8/2007 status | Withdrawn, follow current dept. procedure |
| Keep proof | Yes, keep all communication records |
---
If you want, I can help draft a **sample letter/email** to your jurisdictional officer for this correction!
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