Tally ERP 9 Notes - Service Tax

 

Define Service Tax at the Company Level

 

Go to Gateway of Tally --> F11: Features --> F3: Statutory.

·         Set Enable Service Tax to Yes.

·         Enable Set/Alter Service Tax Details to Yes to display the Service Tax Details screen.

·         Select the required details.

·         Enable Set/alter service tax details to Yes.

·         Enter the Name.

·         Enter the rate for Service Tax.

·         Enter the rate for Education cess.

·         Enter the rate for Secondary education cess.

·         Press Enter.

·         Press Enter to save the details.

·          

To Create the Service Tax Ledger

 

·         Go to Gateway of Tally --> Accounts Info.-- > Ledgers-- > Create.

·         Enter the Name.

·         Select Duties and Taxes as the group name in the Under field.

·         Select Service Tax as the Type of Duty/Tax.

·         Select Service Tax as the Tax Head, from the List of Tax Heads.

·         Select the rounding method.

·         Press Enter.

·         Press Ctrl + A to save the details.

Record the Sale of Services

 

·         Go to Gateway of Tally-- > Accounting Vouchers-- > F8: Sales-- > Accounting Invoice.

·         Select the party’s name in the Party's A/c Name field.

·         Select the sales ledger under Particulars.

·         Enter the amount in the Amount field.

·         Select the ledger grouped under duties and taxes ledger. The service tax rate will get calculated automatically, using the details defined at the company level.

·         Press Enter.

·         Enter the bill-wise details, as required.

·         Enter Narration, if required.

Service Tax on Advance Payment

 

To record an advanced payment

 

·         Go to Gateway of Tally-- > Accounting Vouchers-- > F5: Payment.

·         Click S: Stat Payment.

·         Select Service Tax as the Tax Type.

·         Enter the date in the Period from field and in the To field.

·         Select Advance in the Type of Payment.

·         Press Enter.

·         Select bank ledger in the Account field.

·         Select the expense ledger for arrears under Particulars.

·         Enter the Amount.

·         Press Enter.

·         Enter the Bank Allocation details, as applicable.

·         Press Enter.

·         Enter Narration, if required.

·         Press Ctrl + A to save the invoice.

Reverse Charge - To record a reverse charge transaction

 

·         Go to Gateway of Tally-- > Accounting Vouchers-- > F9: Purchase- > Accounting Invoice.

·         Enter the Supplier Invoice No.

·         Enter the Date.

·         Select the party's name in the Party's A/c Name field.

·         Select the purchase ledger under Particulars.

·         Enter the amount.

·         Select duties and taxes ledger. The service tax rate will get calculated automatically, using the details defined at the ledger level.

·         Press Enter.

·         Enter Narration, if required.

·         Press Enter to save the invoice.