Service accounting codes are now back

I recently came across some news report relating to changes in service tax rules. Can you guide me on the changes that took place in November?– Nitesh

The Central Board of Excise and Customs (CBEC) has issued a circular – No.165/16/2012 – ST dated November 20, 2012 – whereby all old accounting codes abolished by the circular 161/12/2012 dated July 6, 2012, have now been restored.

The effect is service tax which was being paid under accounting code 00441089 as all taxable services with effect from 1.7.2012, will henceforth have to be paid under respective service accounting codes.

The 120 services which were in existence prior to the advent of the negative list-based comprehensive approach of taxation have again been made effective. The circular states that the description of services is purely for statistical analysis purposes. It further states that registrations secured under the positive list approach continue to be valid.

New taxpayers can get registrations by selecting relevant description/s from among the list of 120 given in the Annexure. Where registrations have been obtained under the description ‘All Taxable Services’, the taxpayer should file amendment application online in ACES and opt for relevant description/s. If any applications for amendment of ST-1 are pending with field formations, seeking the description ‘all taxable services’, such amendment may not be necessary and the officers in field formations may provide necessary guidance to taxpayers in this regard.

For payments of service tax to be made, the tax payer will have to make use of the old accounting codes.