Recording Service Tax Transactions

All the services sold can be recorded in Sales Voucher (Account Invoice Mode) or Journal Voucher.

Sales - Taxable Services

Example: On 5-7-2012 ABC Company sold event Management Services to CreativeIn Ad Agency for Rs.55,000 on which service tax is charged @ 12.36%

Go to Gateway of Tally > Accounting Vouchers > F8: Sales

1. In Accounting Voucher Creation screen, press Alt+I or click on I :Account Invoice if the voucher is in Item invoice mode

2. Press F2 and change the date to 05-07-2012

3. In Party’s A/c Name field select the service receiver e.g. CreativeIn Ad Agency

4. Under Particulars select the Service (sales) Ledger e.g. Advertising Services and press enter to view Service Tax Details screen

5. In Service Tax Details screen

• Type of Ref.: Select New Ref from the method of Adjustment. New Ref is selected for new Financial Transactions.

• Name: This filed displays the Reference Number for the service tax calculation. The default Reference Number displayed, is a combination of abbreviation of Sales, Voucher Number and Line Number. Example: Sale/6-1 which can be changed by the user. Service Tax payments are tracked with these Reference Numbers.

Note: If the Reference no. is mentioned in the Ref. field, then Tally.ERP 9 captures reference number instead of voucher number in Number displayed in Name field.

• Type of Service: Based on the Type of Classification selected in the Service Receiver, Type of Service will be defaulted (displayed). By default Taxable is displayed and Tally.ERP 9 skips the field.

Note: In Type of Service field

1. Exempt is defaulted for the Type of Classification Exempt

2. Export is defaulted for the Type of Classification Export

3. Negative List can be selected if the service provided is included under   
Negative List.

3. Pure Agent is defaulted for the Type of Classification Pure Agent

4. Taxable is defaulted for the Type of Classification set to Not Applicable

The default Type of service can be overridden. Press Back Space key to move to Type of Service field and select the applicable Type of service. The type of service selected in the voucher entry will determine the Type of service.

• Category/Service: Based on the Category/Service selected in the Sales/ Income Ledger the category/Service will be displayed. By default Taxable Services is displayed and Tally.ERP 9 skips the filed.

Note: To override the default service category press F12: Configure and set the option Allow to override Service Category during entry to Yes.

• Service Amount: In this field enter the Service Amount Rs. 55000. On providing the service amount Service tax gets calculated.

• Amount (Incl. of Tax): In this field the cumulative (collective) amount of Service amount and Tax will be displayed in this filed

6. In Amount filed the Service Amount of Rs.55,000 will be defaulted automatically.

7. Under Particulars select service  tax ledger e.g. Service Tax @ 12%. Service Tax amount will be calculated and displayed automatically.

8. Under Particulars select education cess ledger e.g. Education Cess @ 2%. Education Cess amount will be calculated and displayed automatically.

9. Under Particulars select secondary education cess ledger e.g. Secondary Education Cess @ 1%. secondary Education Cess amount will be calculated and displayed automatically.

10. Enter the bill details in Bill-wise Details screen.

The completed service sales voucher is displayed as shown:

11. Press enter to accept the voucher.

Sale - Negative List Services

Example: On 10-7-2012 ABC Company sold Education Services to Shobha education Trust for Rs.1,20,000.

Education Services are included in Negative List and is not subject to tax.

 To record Sales Transaction,

Go to Gateway of Tally > Accounting Vouchers > F8: Sales

1. In Accounting Voucher Creation screen, press Alt+I or click on I :Account Invoice if the voucher is in Item invoice mode

2. Press F2 and change the date to 10-07-2012

3. In Party’s A/c Name field select the service receiver e.g. Shobha Education Trust

4. Under Particulars select the Service (sales) Ledger e.g. Education Services and press enter to view Service Tax Details screen

5. In Service Tax Details screen

• Type of Ref.: Select New Ref from the method of Adjustment. New Ref is selected for new Financial Transactions.

• Name: This filed displays the Reference Number for the service tax calculation. The default Reference Number displayed, is a combination of abbreviation of Sales, Voucher Number and Line Number. Example: Sale/7-1 which can be changed by the user. Service Tax payments are tracked with these Reference Numbers.

• Type of Service: Type of Service: Based on the Type of Classification selected in the Service Receiver, Type of Service will be defaulted (displayed). By default Negative List is displayed and Tally.ERP 9 skips the field.

• Category/Service: Based on the Category/Service selected in the Sales/ Income Ledger the category/Service will be displayed. By default Negative List of Services is displayed and Tally.ERP 9 skips the filed.

Note: To override the default service category press F12: Configure and set the option Allow to override Service Category during entry to Yes.

• Service Amount: In this field enter the Service Amount Rs. 1,20,000.

• Amount (Incl. of Tax): In this field Rs. 1,20,000 will be displayed as the service provided is not subject to tax.

6. In Amount filed the Service Amount of Rs.1,20,000 will be defaulted automatically.

7.  Enter the bill details in Bill-wise Details screen.

The completed service sales voucher is displayed as shown:

8. Press enter to accept the voucher.

Sales - Exempt Services

Example: On 12-7-2012 ABC Company sold Health Care Services to City Municipality for Rs.10,00,000.

To record Sales Transaction,

Go to Gateway of Tally > Accounting Vouchers > F8: Sales

1. In Accounting Voucher Creation screen, press Alt+I or click on I :Account Invoice if the voucher is in Item invoice mode

2. Press F2 and change the date to 12-07-2012

3. In Party’s A/c Name field select the service receiver e.g. City Municipality

4. Under Particulars select the Service (sales) Ledger e.g. Health Care Services and press enter to view Service Tax Details screen

5. In Service Tax Details screen

• Type of Ref.: Select New Ref from the method of Adjustment. New Ref is selected for new Financial Transactions.

• Name: This filed displays the Reference Number for the service tax calculation. The default Reference Number displayed, is a combination of abbreviation of Sales, Voucher Number and Line Number. Example: Sale/8-1 which can be changed by the user. Service Tax payments are tracked with these Reference Numbers.

• Type of Service: Type of Service: Based on the Type of Classification selected in the Service Receiver, Type of Service will be defaulted (displayed). By default Exempt is displayed and Tally.ERP 9 skips the field.

• Category/Service: Based on the Category/Service selected in the Sales/ Income Ledger the category/Service will be displayed. By default Exempted Service is displayed and Tally.ERP 9 skips the filed.

• Service Amount: In this field enter the Service Amount Rs. 10,00,000.

• Amount (Incl. of Tax): In this field Rs. 10,00,000 will be displayed as the service provided is not subject to tax.

6. In Amount filed the Service Amount of Rs.10,00,000 will be defaulted automatically.

7. Enter the bill details in Bill-wise Details screen.

The completed service Sales Voucher is displayed as shown:

8. Press Enter to Accept the Voucher.