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Refund of Service Tax Input Credit [Service Tax] in Tally.ERP 9

Refund of Service Tax paid on input services can be claimed  

  • When the services have been received by an exporter and used for the services exported (in terms of Export of Service Rules 2005)

  • When the services have been received by an exporter and used for manufacture of goods exported

Conditions for claiming the Refund of Service Tax paid on input services are

  • The refund shall be claimed by the exporter of the goods/services for the input services received and used by the exporter for export of goods/services

  • Claim can only be in the form of refund of Service Tax paid on the specified services used for goods/services

  • To claim the refund the exporter should have actually paid the Service Tax on the input services

Now in Tally.ERP 9, you can record the Refund of Service Tax paid (Service Input Credit) on the services purchased which are used towards the goods exported. To account refund of Service Input Credit in Journal Voucher a new flag - Refund of Service Tax Input Credit has been provided.

Example: On 12-10-2012 ABC Company purchased Fashion Designer Services from Aman Creations for Rs. 2,50,000, paying Service Tax @ 12.36%.

 

Fashion Designer Services purchased were for the manufacture of garments which were exported to United States.

 

On 16-10-2012 after export of goods, ABC company claimed the refund of service tax Rs. 30,900 paid on the input services purchased as on 12-10-2012 from Aman Creations, which are used for providing services exported.

To claim the refund of Service Tax Input Credit follow the given steps.

Step1: Record Service Purchase Transaction

Before accounting the purchase transaction, ensure Party Ledger, Service Purchase and Tax Ledgers are created.

To record Service Purchase Voucher

Go to Gateway of Tally > Accounting Vouchers > F9: Purchase


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Step 2: Create Current Asset Ledger

To create Current Asset Ledger

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

  •  In Name field enter Ledger name - Refund of Input Credit

  • Group the Ledger Under - Current Assets

  • In Type of Duty/Tax field select Not Applicable

  • Set Inventory values are affected to No

  • Press Enter to save the Ledger Creation

Step 3: Record a Journal Voucher (to account refund of Service Tax Input Credit)

To account the refund of Service Input Credit

Go to Gateway of Tally > Accounting Vouchers > F7: Journal

  1. In Change Voucher Type screen in Class field select Service Tax Adjustments from Voucher Class List

  2. Press F2 and change the date to 16-10-2012

  3. In Used for field select the flag Refund of Service Tax Input Credit


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  1. In Debit field select the Ledger created under Current Assets - Refund of Input Credit

  2. In Debit Amount field specify the amount claimed as refund Rs. 30,900

Note: ABC Company is claiming refund of input credit of Rs. 30,900 on the services purchased from Aman Creations.

  1. In Credit field select Service Tax Ledger - Service tax @ 12% and press enter to view Service Tax Details screen

  2. In Service Tax Details screen

  3. In Type of Ref field select Agst Ref as the Method of Adjustment

  4. In Name field select the service tax bill - Purc/12-1 against which the Service Input Credit refund is claimed

Note: The Tax bill references will be displayed in Pending Tax Bills only when the payment is made to the Service Provider.

  1. On selection of service tax bill Category and Amount will be defaulted automatically. Accept the default details


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Note: If you are claiming refund of Partial service input credit then in Amount field specify the amount which is claimed as refund.

  1. In Credit field select Education Cess Ledger - Education Cess @ 2% and in Service Tax Details screen select the tax bill Purc/12-1 and accept the default details displayed

  2. In Credit field select Education Cess Ledger - Secondary Education Cess @ 1% and in Service Tax Details screen select the tax bill Purc/12-1and accept the default details displayed

The completed Journal Voucher is displayed as shown:


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  1. Press Enter to save.

 
 
 
 
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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