29 January 2013
What services are covered under category 120 i.e. Other taxable services?
If all services provided are listed in the list of 119 services, but there are few services on which you are liable to pay ST on Reverse Charge basis. (e.g. receiving lawyer service, manpower services etc)
Question: 1. Do we need to select category 120 if there will be such services?(e.g. receiving lawyer/manpower service) should we select it, to be on a safer side? As person is not providing such services he need not register under such specified categories(from 1 to 119)but he may receive such services, then under such situation whats should be done?
2. What accounting code we need to apply while paying service tax and filing returns?
25 July 2025
Great questions! Here’s a clear explanation about **Service Tax registration category 120 (Other Taxable Services)** and handling reverse charge services as a service receiver:
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### 1. **What is Category 120 – Other Taxable Services?**
* Category 120 covers **all taxable services which are not specifically covered under categories 1 to 119**.
* It is a **catch-all category** used for services that do not fall into any predefined category.
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### 2. **Registration Requirement When Receiving Services Under Reverse Charge**
* If your company **receives services on which you are liable to pay Service Tax under Reverse Charge Mechanism (RCM)** — such as:
* Lawyer/advocate services * Manpower supply services * GTA (Goods Transport Agency) services * Sponsorship services, etc.
* Even if your company **does not provide these services**, but receives them and is liable to pay ST under RCM, **you must register under category 120 (Other Taxable Services)**.
* This ensures compliance and reflects your liability as a **service receiver**.
* So, **selecting category 120 is recommended to cover all services under reverse charge** that do not fall under specific categories you provide.
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### 3. **If You Do Not Provide Such Services but Receive Them**
* You are **required to register under category 120** since you have ST liability on RCM basis as a receiver.
* The registration will cover your **obligation to pay ST on reverse charge for such received services**.
* This is a **legal requirement** even if you are not a service provider of those services.
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### 4. **Accounting Code for Service Tax Payment on Reverse Charge**
* While paying Service Tax on Reverse Charge basis, you should use the **specific accounting code related to the type of service received**.
* However, in many cases where no specific code exists for the service under RCM, the **code “998799” (Other Business Services)** is commonly used.
* For example:
* Lawyer services under RCM — code 998311 (Legal Services) * Manpower supply services under RCM — code 998312 (Manpower Supply Services) * If unsure, you can use **category 120’s relevant code**, or consult the department for confirmation.
* Always check the latest Service Tax Accounting Codes list or circulars for the correct code.
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### **Summary**
| Situation | Action Required | Accounting Code Example | | ----------------------------------------------- | -------------------------------------------- | -------------------------------------------------------------- | | Receiving services liable under RCM | Register under category 120 | Use relevant service-specific code if available, else “998799” | | Providing other taxable services | Register under respective service categories | Use respective codes | | Only receiving RCM services, not providing them | Register under category 120 | Use codes related to received services or “998799” |
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If you want, I can help you with:
* Sample registration form filling under category 120 * Suggested accounting codes for your specific services received under RCM
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