As per the amendment, Abatement concept is being replaced by Taxable Percentage.
In Tally.ERP 9, provision is made available to define the taxable percentage in Ledger master created under Indirect/Direct Expenses, Indirect/ Direct Incomes, Purchases and Sales group.
Example: On 16-7-2012 ABC Company received services - Transportation of Goods by Rail from Krypton Agency for Rs.1,00,000. Service Tax is charged on 30% of Service Amount @ 12.36%.
To record the above transaction
1. Create Service Ledger
2. Record the Transaction in Sales Voucher
To create the Service Ledger
Go to Gateway of Tally > Accounts Info. > Ledgers > Create
Setup:
In 12: Ledger Configuration
Set the option Allow ADVANCED entries in Service Tax Master to Yes
In Ledger Creation screen,
Enter the Name of the service ledger, for e.g., Transportation Expenses - By Rail.
Select Indirect Expenses 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.
Enable the option Set/Alter Taxable Percentage Details to Yes
Note: Set/Alter Taxable Percentage Details option will appear in service ledger creation/alteration screen only when the option Allow ADVANCED entries in Service Tax Master is set to Yes.
In Taxable Percentage Details screen
Category: In this field, Service Category selected in Default Service Category field will be displayed.
Applicable From: In this field mention the date from when the Taxable Percentage is applicable for the service category.
Notification No.: In this field mention the notification no. under which the taxable percentage is defined for the service category.
Abatement : Mention the Taxable Percentage allowed for the service category.
Completed Service Expense Ledger appears as shown:
Press Enter to save.
Go to Gateway of Tally > Accounting Vouchers > F7: Journal
Press F2 and change the date to 16-07-2012
In Debit field select Transportation Expenses - By Rail ledger and press enter to view Service Tax Details screen
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: Jrnl/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 Provider, Type of Service will be defaulted (displayed). By default Input Credit is displayed and Tally.ERP 9 skips the field.
Category/Service: Based on the Category/Service selected in the Purchase/ Expense Ledger service will be displayed. By default Taxable Service 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. 1,00,000. On providing the service amount Service tax gets calculated. You can observe, service tax is calculated on 30,000 (i.e. 30% of 100000) based on the Taxable Percentage defined in the Expense ledger.
Amount (Incl. of Tax): In this field the cumulative (collective) amount of Service amount and Tax will be displayed in this filed
Note: Taxable Percentage and Notification no can be altered during entry by enabling the option Allow alteration of Taxable Percentage.
Tally.ERP 9 allows to enable the option - Allow alteration of Taxable Percentage during entry, only when the option Allow to override Service Category during entry is set to Yes as the Taxable Percentage is allowed for the services and Taxable Percentage screen will be displayed only when the cursor moves to Category/Service field.
The Taxable Percentage screen appears as shown. From here you can alter the taxable percentage.
In Amount filed the Service Amount of Rs. 1,00,000 will be defaulted automatically
In Debit field select service tax ledger e.g. Service Tax @ 12%. Service Tax amount will be calculated and displayed automatically.
In Debit field select education cess ledger e.g. Education Cess @ 2%. Education Cess amount will be calculated and displayed automatically.
In Debit field select secondary education cess ledger e.g. Secondary Education Cess @ 1%. secondary Education Cess amount will be calculated and displayed automatically.
In Credit field select the party ledger - Krypton Agency. Total amount (Rs. 1,03,708) of Service Cost plus the Service Tax will be displayed in the Amount field.
The completed Journal Voucher is displayed as shown:
Press Enter to Accept the Voucher.