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Sale of Pure Agent Services [Service Tax] in Tally.ERP 9

A Pure Agent is a service provider who is a liaison between another service provider and a service buyer. An expense incurred by the pure agent is exempt from Service Tax.

Tally.ERP 9 provides the facility to exclude the costs and expenses incurred by a service provider acting as a Pure Agent from total service charges to get taxable amount.

Example: On 27-7-2012 ABC Company acted as a pure agent in getting Event Management Services to MagicWorks. service cost including pure agent expenses of Rs. 25,000 amounted to Rs. 1,50,000.

To record the above transaction

1. Create the Service Receiver (Customer) Ledger

2. Record the transaction in Sales Voucher

1. Create the 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. MagicWorks

  • 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. ASSDE4005GST001

  • Date of Registration: Enter the Registration Date 3-3-2004

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


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Note: Select the option Pure Agent, when the service provider/service receiver acts as a pure agent.

  • Enter the Mailing Details and Tax Information

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

 
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  • Press Enter to Accept and save.

2. Record the transaction in Sales Voucher

To record 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 27-07-2012

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

  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/10-1 as the Reference Number accept the default number

  • Type of Service: By default Pure Agent is displayed

  • In Expense Amount field specify the Expenses incurred by the pure agent in procuring taxable service to the service recipient. Enter Rs. 25,000


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  • Category: Based on the service Category selected in the sales ledger, category will be defaulted (displayed). By default Taxable Service is displayed and Tally.ERP 9 skips the field

  • Service Amount: In this field enter the Service Amount of advertising services. Enter Rs. 1,50,000

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

Note:Service Tax is calculated on 1,25,000 excluding the pure agent expenses amount.


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  1. In Amount field the Rs. 1,50,000 will be defaulted automatically

  2. Under Particulars select Service Tax Ledger e.g. Service Tax @ 12%. Service Tax amount will be calculated and displayed automatically

  3. Under Particulars select Education Cess Ledger e.g. Education Cess @ 2%. Education Cess amount will be calculated and displayed automatically

  4. Under Particulars select Secondary Education Cess Ledger e.g. Secondary Education Cess @ 1%. Secondary Education Cess amount will be calculated and displayed automatically

  5. In Bill-wise Details enter the Bill details as shown:


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The completed service 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) (iii) 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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