Receipts (Full) from Service Receiver

Service Tax is charged only on the receipt of the consideration for the services provided / to be provided (advance receipts). Liability to pay service tax on services sold will arise only on the receipt of payment and to the extent of the payment received from the customer.

Example: On 7-4-2010 ABC Company Received Rs. 1,10,300 through cheque from CreativeIn Ad Agency towards the service bill dated 5-4-2010

Record the Transaction in Receipt Voucher

Go to Gateway of Tally > Accounting Vouchers > F6: Receipt

  1. Press F2 and change the date to 07-04-2010

  2. In Credit field select CreativeIn Ad Agency and press Enter to view Service Tax Details screen

  3. In Service Tax Details screen

  4. In Type of Ref field select Agst Ref to adjust the service tax of the bill dated 3-4-2010

  5. In Name field select Sale/1-1 dated 5-4-2010 from the List of Pending Tax Bills.

  6. On selection of bill, details in Type of Service, Category, Amount (incl. of tax), Service Amount fields and tax bifurcation will be displayed automatically. Press Enter to accept the Service tax details.

As there is a possibility that the service receiver may make full or partial payment to the party,  Tally.ERP 9 allows the user to alter the amount. If partial payment is made, based on the amount specified in the Amount field Service Tax and Cess amount will be re-calculated and displayed

  1. In Bill-Wise Details screen

  2. In Type of Ref filed select Agst Ref from Method of Adj. list to adjust the payment towards the bill dated 3-4-2010

  3. In Name field select the bill - 475/09-10 dated 5-4-2010

  4. Amount will be displayed automatically

  1. In Debit field select the Bank Ledger - Canara Bank. Amount will be displayed automatically.

  2. Enter Narration, if required.

Completed Receipt Voucher is displayed as shown

  1. Press Enter to save.

Service Tax Payables

On receipt of payment from customers towards the services sold, the service tax on such sales will be displayed as the liability. Details of Service Tax can be viewed in Service Tax Payable report

To view Service Tax Payable report

Go to Gateway of Tally > Display > Statutory Reports > Service Tax Reports > Service Tax Payables > Bill Date wise

Service Tax Payable can also be checked from Receipt Date Wise report.