As per Rule 6 sub-rule (1A), all the taxable persons can pay service tax in advance. Service tax paid in advance is allowed to be self-adjusted towards service tax liable to be paid for the subsequent period.
Advance Service Tax payment transactions can be accounted in Tally.ERP 9. The advances paid to the government can be adjusted against the Tax payable for any period.
Example: On 26-4-2010 ABC Company paid Advance service tax of Rs. 10,000 to the Government towards Event Management Service.
To record the Payment Voucher
Go to Gateway of Tally > Accounting Vouchers > F5: Payment
Set up:
In F12: Payment Configuration
Set the option Use Single Entry mode for Pymt/Rcpt/Contra to Yes
Press F2 and change the date to 26-04-2010
In Account field select the bank ledger - Canara Bank
Under Particulars select Service Tax @ 10% and press enter to view Service Tax Details screen
In Service Tax Details screen
In Type of Ref field select Advance as the Method of Adjustment
In Name field, application displays the reference number, which is a combination of abbreviation of Payment and Voucher Number and Line Number (example: Pymt/5-1) which can be changed by the user.
In Category field select the service category - Event Management Service
In Amount field enter the amount paid as advance. Enter Rs. 10,000
Set the option Provide Details to Yes
In Service Tax Payment Details screen
From and To: In this field enter the period as 1-4-2010 to 30-4-2010
Cheque/DD No: In this field user can enter either the cheque or the DD No through which the service tax payment is made. In this transaction payment is made through cheque. Mention the cheque number as 006536.
Name of the Bank: In this field mention the Name of the Bank through which the tax amount is paid to the Government. Select Canara Bank from the List of Banks.
In this field Tally.ERP 9 displays the List of Banks which lists all the banks which are already created to carry out the regular business, option (New Name) to create new Bank and the option Not applicable if the payment is made by Cash.
Note: New Name will be selected when the authorised bank through which the payment is made is different from the regular bank where the deposit account is maintained. The Bank name created here will not be available under the List of Ledgers.
Bank Account Number: Enter the bank account number in this field.
Branch Name: Enter the bank Branch name in this field.
Note: Bank Account Number and Branch Name details will be defaulted automatically, if the user selects the bank which is already created to carry out the regular business in the Name of Bank field. User can change such defaulted details.
Cheque Date: If the payment is made through cheque enter the cheque date in this field.
Challan No.: In this field enter the service tax payment Challan number.
If the service tax payment challan details are not available at the time of recording the service tax payment entry, such details can be updated by altering the payment voucher.
Challan Date: Enter the Challan Date.
ePayment Number: If you are making ePayment enter e apyment number in this field. If cheque Number is not specified then the cursor will move to this field otherwise application slips this field.
The completed payment voucher is displayed as shown
Press enter to save and accept
Note:
1. The advance service tax payment entry can also be recorded in Double Entry Mode also.
2. If you know the exact break-up of duties you can also select education and secondary education cess ledgers.
Most of the users select service tax for Advance payment of tax as the service tax paid can be adjusted against any of the tax head.
To view the Advance Payment entries
Go to Gateway of Tally > Display > Statutory Reports > Service Tax Reports > Service Tax Payables > Bill Date Wise
In F12: Configuration
Set the option Show Tax Paid/Adjusted/Utilised Amount to Yes
In Show bills of the following Type select Paid Bills
Note: The Advance paid will be adjusted against the service tax payable (if any).