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Sale of Services Exempted from Service Tax [Service Tax] in Tally.ERP 9

In some cases Central Government can grant exemption on the Service Tax, by issuing an notification u/s 93 of Finance Act, 1944. The Service Tax exemption provided may

  • Partial or Total Service Tax

  • Conditional or Unconditional

Example: On 24-7-2012 ABC Company sold Event Management Services for Rs. 1,00,000 to Mayank Distributors, who is a small service provider and has a notification for exemption on Service Tax.

 

On 25-7-2012 ABC Company received payment towards the services provided on 24-7-2012 to Mayank Distributors.

To record the above transaction

1. Create Service Receiver (Customer) Ledger

2. Record a Sales Voucher

1. Create (Service Receiver) Customer Ledger

To create Service Receiver Ledger under Sundry Debtors

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

  • Enter the Name of the Customer Ledger e.g. Mayank Distributors

  • 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

  • Registration Number: Enter 15 digits Service Tax Registration Number of the Service Provider. E.g. ACCFG0054DST001

  • Date of Registration: Enter the Registration Date 17-3-1999

  • Type of Classification: In this field select the classification as Exempt

  • Notification No. : In this field enter the Notification Number under which a party is exempted from Service Tax. Example: 5/2005 dated 23-3-2005


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Note:

* Exempt option is selected when the service provider/service receiver is exempt from Service Tax.

 

* Notification Number provided here is only as an example.

 

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

 

  • Enter the Mailing Details and Tax Information

 
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  • Press Enter to Accept and save

2. Record a Sales Voucher

To create Sales Voucher

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 24-07-2012

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

  4. Under Particulars select the Service (sales) Ledger e.g. Sales- Event Mgt Services and press Enter to view Service Tax Details screen

  1. In Service Tax Details screen

  • Select New Ref from the Method of Adjustment

  • Name: This field displays Sale/8-1 as the Reference Number accept the default number

  • 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: Based on the Service Category selected in the Sales Ledger, category will be defaulted (displayed). By default Exempted Service is displayed and Tally.ERP 9 skips the field

  • Service Amount: In this field enter the Service Amount of event management services. Enter Rs. 1,00,000

  • Amount (Incl. of Tax): In this field Rs. 1,00,000 will be displayed as the service provided is exempt from Service Tax


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  1. In Amount field the Service Amount of Rs. 1,00,000 will be defaulted automatically.

Note: Service Tax Ledgers are not selected as the service provided is exempted from Service Tax.

  1. Enter the bill details in Bill-wise Details. Select reference as New Ref and bill Name as ABC/458

  2. Enter Narration, if required

The completed Sales Voucher is displayed as shown:


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  1. Press Enter to Accept the Voucher

Note: Details of Exempted services will be displayed under 3F (I) (C) (ii) section of Form ST 3

 
 
 
 
Tally.ERP 9 Reference Manual LIBRARY
1.
Installation of Tally.ERP9
2.
Site Licensing of Tally.ERP9
3.
Shortcut Keys in Tally.ERP9
4.
Maintaining Company Data
5.
Creating Masters
5a. Accounts Information [Creating Masters]
5b. Inventory Information [Creating Masters]
6.
Voucher Entry
7.
Reports in Tally.ERP9
8.
Excise for Dealer
9.
Excise for Manufacturer
10.
Reports [ Excise for Manufacturer]
11.
Excise for Importer
12.
Service Tax in Tally.ERP9
13.
Tax Collected at Source (TCS) in Tally.ERP9
14.
Tax Deducted at Source (TDS) in Tally.ERP9
15.
Value Added Tax (VAT) in Tally.ERP9
16.
Central Sales Tax (CST) in Tally.ERP9
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
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