Service tax
Introduction :
Service tax is an indirect tax levied on certain category of services provided by a person, firm,
agency, etc. The Government of India has marked a set of services as taxable under the service
tax structure. The seller provides a service and the responsibility of paying the service tax to the
government rests with the seller
How to enable in Tally:
When you open particular company in Tally press F11_ Statutory and Taxation_ Enable
Service Tax to YES
To give the information about the Service Tax details of the company Set the option
Set/Alter Service tax Details TO YES Then you’ll get the screen as below
Fill the details and accept the screen
Note:As soon as you accept this screen and go back the option will set to NO by default
you need to set it as YES when ever you want to change the details of service tax.
Ledgers to be created for Service tax and the entries
Ledgers for Purchase of Service Tax
Sundry Creditor(under sundry creditor and set the option Is Service Tax applicable to
YES and Type of classification to Not Applicable and enable the Bill wise details )
Courier Charges(under Indirect\direct exp and set the option is service tax applicable to
YES and select the category in this case it is courier agency)
Service tax on courier (under Duties and Taxes_type of duty Service Tax and category
courier agency )
Note:The category selected for exp and service tax ledger should same then only the
service tax will be calculated automatically
Entries to be passed for Purchase
From Gate way of Tally go to Accounting voucher press F9 to go to purchase
voucher and let it be in Accounting invoice(set the option common ledger for item
allocation and default for bill allocation to NO in F12)
The screen looks like below
In party account name select the ledger i.e, Sundry creditor In Particulars select the
courier exp and give the amount and next select the service tax ledger created and the
service tax details will be calculated auomatically and shown as below
accept the screen and it will ask for Bill wise details as below select the appropriate
service tax details and accept the screen
You need to pass one payment entry for the party against this Invoice then only You’ll be
able to get the amount in Input credit form
To check the Input credit available Go to Display_Statutory Reports_Service Tax
Reports _Input credit Form the screen will be as shown below
This screen appears only if you have made payment to the Party
Ledgers for Sale Of Services
Sundry Debtors(under the group sundry debtor and Type Not applicable and enable Bill
wise details )
Audit work(Under direct Income\Indirect income and set the option Is service tax
applicable to Yes and select the correct category)
Service tax on audit(under duties and taxes and Type of Duty TO Service Tax and select
the category )
From Gate way of Tally go to Accounting voucher press F8 to go to Sales voucher
and let it be in Accounting invoice
Select the party i.e, sundry debtor and in particular select auditing and then select service
tax ledger and give the bill wise details and accept the screen and pass one reciept entry
against this bill.
The sales invoice will be as below
To check the service tax payable amount Go to Display_Statutory
Reports_Service Tax Reports _Service Tax Payable the screen looks like below
How to adjust the service tax payable with Input credit Available
For this we need to pass one JV(Journal Voucher )
Gate way of tally_Accounting Voucher_PressF7
Dr Service tax on audit……. 1020
It will ask the bill wise detail select the bills and accept it will as for Credit limit give
100%
Cr Service tax on courier……1020
Select the bill wise details upto the payable available
