1. Taxable Services
To create the Service Ledger
Go to Gateway of Tally > Accounts Info. > Ledgers > Create
Enter the Name of the Service Ledger, for e.g., Advertising Services.
Select Indirect Incomes as the group name in the Under field.
Set Inventory values are affected to No.
Set Is Service Tax Applicable to Yes.
In Default Service Category field select Taxable Service from the List of Service Categories.
Note: In List of Service Categories, 3 new service types - Taxable Services, Negative List of Services & Exempted Services are included to account the transaction based on Negative List.
Completed Service Income Ledger appears as shown:
Press Enter to save.
Go to Gateway of Tally> Accounts Info.> Ledgers> Create
Enter the Name of the Customer Ledger e.g. CreativeIn Ad Agency.
Select Sundry debtors from the List of Groups in the Under field.
Set Maintain balances bill-by-bill to Yes.
Enter the Default Credit Period, if required.
Set Is Service Provider/Receiver to Yes.
Note: In day-to-day business scenario a customer can provide services as well as receive services. In such cases, same party ledger can used to account both the sale and purchase of services.
Set the option Set/Alter Service Tax Details to Yes and press Enter to view Service Tax Details screen
In Service Tax Details screen enter
Registration Number: Enter 15 digits Service Tax Registration Number of the Service Provider. E.g. APPLG7584DST001
Note: Service Tax Registration Number is a PAN Based Number. For More information refer the topic - Service Tax Assessee Code.
Date of Registration: Enter the Registration Date
Type of Classification: In this field select the classification, if applicable. Here Not Applicable is selected
Press Enter to save Service Tax Details and Customer Ledger Creation.
2. Negative List Services
To create the Service Ledger
Go to Gateway of Tally > Accounts Info. > Ledgers > Create
Enter the Name of the service ledger, for e.g., Education Services.
Select Indirect Incomes as the group name in the Under field.
Set Inventory values are affected to No.
Set Is Service Tax Applicable to Yes.
In Default Service Category field select Negative List of Services from the List of Service Categories.
Completed Service Income ledger appears as shown:
Press Enter to save.
Go to Gateway of Tally> Accounts Info.> Ledgers> Create
Enter the Name of the Customer Ledger
Select Sundry debtors from the List of Groups in the Under field.
Set Maintain balances bill-by-bill to Yes.
Enter the Default Credit Period, if required.
Set Is Service Provider/Receiver to Yes.
Set the option Set/Alter Service Tax Details to Yes and press enter to view Service Tax Details screen
In Service Tax Details screen enter
Enter Service Tax Registration Number and Date of Registration
In Type of Classification select the Negative List from the Classification list.
Press Enter to save Service Tax Details and Customer Ledger creation.
3. Exempted Services
To create the Service Ledger
Go to Gateway of Tally > Accounts Info. > Ledgers > Create
Enter the Name of the service Income ledger, for e.g., Education & Coaching Services.
Select Indirect Incomes as the group name in the Under field.
Set Inventory values are affected to No.
Set Is Service Tax Applicable to Yes.
In Default Service Category field select Exempted Services from the List of Service Categories.
Completed Service Income ledger appears as shown:
Press Enter to save.
Go to Gateway of Tally> Accounts Info.> Ledgers> Create
Enter the Name of the Customer Ledger
Select Sundry debtors from the List of Groups in the Under field.
Set Maintain balances bill-by-bill to Yes.
Enter the Default Credit Period, if required.
Set Is Service Provider/Receiver to Yes.
Set the option Set/Alter Service Tax Details to Yes and press enter to view Service Tax Details screen
In Service Tax Details screen enter
Enter Service Tax Registration Number and Date of Registration
In Type of Classification select the Exempt from the Classification list. In Notification No. field enter the Notification number under which a party is exempted from Service Tax. Example: 25/2012-ST dated 20/6/12.
Press Enter to save Service Tax Details and Customer Ledger Creation.