Important update

Dear Sir/Madam,

 As expected, CBEC has realized the folly of its move to collect the Service Tax only under one Accounting Code after the introduction of the Negative List-based levy of Service Tax regime effective from 01.07.2012.  Remedying the situation, the Board has now issued a Circular No. 165/16/2012-ST Dated 20.11.2012 providing that the Service Tax Assessees would require to pay Service Tax under the relevant Accounting Code out of 120 Accounting Codes specified in the Annexure attached to the aforesaid Circular.

On the advice of the C & AG, a specific sub-head has also been provided for payment of “penalty” under various descripttions of services and it has also been clarified that the sub-head “other receipts” is meant only for payment of interest payable on delayed payment of Service Tax. 

 A copy of the Circular and Annexure is attached for your information and necessary action.  The contents of the Circular are self explanatory.  However, any guidance or assistance is required in the matter,  please do not hesitate to contact our office.