Payment of Interest and Penalties

As per Section 75, Interest is payable @ 13% on all the short or non payment of Service Tax.

Tally.ERP 9 supports the recording of such Interest payment entries.

Example: on 6-8-2012, ABC Company paid

 

Service tax on tax bill Sale/12-1 Rs. 3600

Education Cess on Tax bill Sale/12-1 Rs. 72

Secondary Education Cess on Tax bill Sale/12-1 Rs. 36

Arrears of Rs. 5,000 (towards Event Management services)

Interest of Rs. 800 (towards Event Management services)

To record the above transaction

1. Create Arrears Ledger

2. Create Interest Ledger

3. Record the transaction in Payment Voucher

1. Create Arrears Ledger

To create Arrears ledger

Go to Gateway of Tally > Accounts Info. > Ledger > Create

Note: From Rel 4.8 an option to provide Bank Details is provided in the Ledger Master.

2. Create Interest Ledger

To create Interest ledger

Go to Gateway of Tally > Accounts Info. > Ledger > Create

3. Record the transaction in Payment Voucher

To record a Payment Voucher

Go to Gateway of Tally > Accounting Vouchers > F5: Payment

  1. Press F2 to change the date to 6-8-2012

  2. In Account field select Canara Bank

  3. Under Particulars select service tax ledger - Service Tax @ 12%

  4. In Service Tax Details screen

  5. In Type of Ref field select Agst Ref

  6. In Name field select Sale/12-1. Based on the bill selected Category and Amount will be defaulted.

  1. Under Particulars select education cess ledger - Education Cess @ 2%

  2. In Service Tax Details screen

  3. In Type of Ref field select Agst Ref

  4. In Name field select Sale/12-1. Based on the bill selected Category and Amount will be defaulted.

  1. Under Particulars select secondary education cess ledger - Secondary Education Cess @ 1%

  2. In Service Tax Details screen

  3. In Type of Ref field select Agst Ref

  4. In Name field select Sale/12-1. Based on the bill selected Category and Amount will be defaulted.

  1. Under Particulars select Arrears Ledger - Service Tax Arrears

  2. In Service Tax Payment Type screen, select Others as the Payment Type

  3. In Arrears Details screen

  4. In Type of Ref field select New Ref

  5. In Type of Payment field select Arrears from Type of Payment list

  6. In Category field select Event Management Service from the List of Service Categories

  7. In Amount field enter Rs. 5,000

  1. Under Particulars select interest ledger - Interest

  2. In Service Tax Payment Type screen, select Others as the Payment Type

  3. In Arrears Details screen

  4. In Type of Ref field select New Ref

  5. In Type of Payment field select Interest from Type of Payment list

  6. In Category field select Event Management Service from the List of Service Categories

  7. In Amount field enter Rs. 800

  1. Set the option Provide Details to Yes to provide Service Tax Payment Details

  1. Press Enter to save.

Printed G.A.R.-7 Challan will be displayed as shown


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