www.TallyERP9Help.Com

Reversal of Service Amount with Tax [Service Tax] in Tally.ERP 9

In case of Cancellation of transaction(s), the service amount and service tax accounted needs to be reversed. In Tally.ERP 9, such reversal of services with service tax is possible only when the cancellation of transaction is made before the payment/ receipt of payment towards the service purchased or sold.

From 1-4-2011 as per the new Point of Taxation Rule, reversal of services cancelled is possible in the following manner.

  • Services Purchased - Reversal of services purchased is possible only when the cancellation of transaction is made before the payment towards the service purchased.

  • Services Sold - Reversal of services can be recorded even after payment of tax to the government.

In Tally.ERP 9, reversal of services and tax are accounted using Debit /Credit Note.

Example: On 29-7-2012 ABC Company cancelled the advertising services purchased on 25-7-2012(Purc/7-1) for Rs. 28,090 (Bill–KA/658/12-13) as Krypton Agency failed to provide the services as per the terms & conditions of the contract.

Step 1: Record a Purchase Voucher (to account purchase of service)

First record a Purchase Voucher to account the purchase of services.

Step 2: Record a Debit Note (to reverse the services with Tax)

Set Up:

In F11: Features (Accounting Features)

  • Set Use Debit/Credit Notes to Yes

  • Set Use Invoice Mode for Debit Notes to Yes

To create Debit Note

Go to Gateway of Tally > Accounting Vouchers > Ctrl+F9: Debit Note

  1. Press Alt + I for Account Invoice mode

  2. Press F2 and change the date to 29-07-2012

  3. In Party’s A/c Name field select Krypton Agency from the List of Ledger Accounts

  4. Under Particulars select Purchase- Advertising Services Ledger

  5. In Service Tax Details screen

  6. In Type of Ref field select Agst Ref

  7. In Name field select purchase reference number Purc/7-1 dated 25-7-2012

  8. Based on the purchase reference number selected Type of Service, Category, Amount (Incl. of Tax) and Service Amount will be displayed automatically


[Img-170]

  1. In Amount field the Service Amount of Rs. 25,000 will be defaulted automatically.

  2. Under Particulars select Service  Tax Ledger e.g. Service Tax @ 12% to reverse Service Tax amount.

  3. Under Particulars select Education Cess Ledger e.g. Education Cess @ 2% to reverse Education Cess amount.

  4. Under Particulars select Secondary Education Cess Ledger e.g. Secondary Education Cess @ 1%  to reverse Secondary Education Cess amount.

  5. In Bill-wise Details screen

  6. In Type of Ref field select Agst Ref

  7. In Name field select the bill KA/658/12-13 dated 25-7-2012 to reverse the service bill.

  8. Amount will be defaulted automatically


[Img-171]

The completed service Debit Note Voucher is displayed as shown:


[Img-172]

  1. Press Enter to Accept the Voucher.

Note: The above transaction can also be recorded in Voucher mode also.

 

Similarly, on cancellation of services sold you can record reversal entry in Credit Note .

 
 
 
 
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.
Our Portal : www.TallyERP9Book.Com www.IncomeTaxManagement.Com www.Tally9Book.com www.TallyERP9Help.Com
Disclaimer :
Tally, Tally 9, Tally9, Tally.ERP, Tally.ERP 9, Tally.Server 9, Tally.NET & Power of Simplicity are either registered trademarks or trademarks of Tally Solutions Pvt. Ltd. in India and/or other countries. All other trademarks are properties of their respective owners.
The visitors may click here to visit the web site of Tally Solutions Pvt. Ltd. for resolving their doubts or for clarifications