Before 30th June, 2012, under positive list department has prescribed three accounting codes for each service namely service code, other code and refund code. Service Code was used for payment of service tax, other code was used for payment of interest & penalty and refund code was used by department for refund of tax. However after the introduction of Negative List, department has prescribed single accounting 2 code for payment of service tax. In addition three accounting codes were also prescribed namely other receipts for payment of interest, penalties for payment of payment, deduct refunds to be used by department.
Subsequent to the issuance of the circular for introduction of new accounting codes, suggestions were received from the field formations that the service specific old accounting codes should be restored, for the purpose of statistical analysis; also it was suggested that list of descriptions of services should be provided to the taxpayers for obtaining registration. These suggestions were examined and a decision has been taken to restore the service specific accounting codes. Accordingly, a list of 120 descriptions of services for the purpose of registration and accounting codes corresponding to each description of service for payment of tax is provided. Newly introduced accounting code structure contains four accounting codes for each service instead of three accounting codes prevailing before 1st July, 2012. For list of accounting codes for all services please refer “Annexure-A”.
For ease in understanding, Team DYN has made an attempt to clarify situation by way of an illustration:-
ABC & Co Chartered Accountant is required to make following payment:-
Service Tax: Rs. 5,00,000
Primary Education Cess: Rs. 10,000
Secondary and Higher Education Cess: Rs. 5,000
Interest on Service Tax: Rs. 10,000
Interest on Primary Education Cess: Rs. 2,000
Interest on Secondary and Higher Education Cess: Rs. 1,000
Penalty under Section 76 on Service Tax: Rs. 2,50,000
Penalty under Section 76 on Primary Education Cess: Rs. 5,000
Penalty under Section 76 on Secondary and Higher Education Cess: Rs. 2,500
Accounting Codes for payment of tax would be as under:-
| S. No. | Nature of Payment | Accounting Code | Amount |
| 1. | Service Tax | 00440092 | Rs. 5,00,000 |
| 2. | Primary Education Cess | 00440298 | Rs. 10,000 |
| 3. | Secondary and Higher Education Cess | 00440426 | Rs. 5,000 |
| 4. | Interest on Service Tax | 00440093 | Rs. 10,000 |
| 5. | Interest on Primary Education Cess | 00440299 | Rs. 2,000 |
| 6. | Interest on Secondary and Higher Education Cess | 00440427 | Rs. 1,000 |
| 7. | Penalty under Section 76 on Service Tax | 00441319 | Rs. 2,50,000 |
| 8. | Penalty under Section 76 on Primary Education Cess | 00441486 | Rs. 10,000 |
| 9. | Penalty under Section 76 on Secondary and Higher Education Cess | 00441487 | Rs. 5,000 |
