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How to set up Service tax duty ledger in Tally.erp 9

As we have seen that service tax module in tally.erp 9 release 1.8  has been completely re written and it is giving a perfect solutions to service tax requirement of any enterprise.

However, one need to renew tally.net license to download the latest release 1.8 of tally.erp 9 as the new service tax module is available only with release 1.8 and above.

Company Creation

Go to Gateway of Tally > Alt + F3 > Create Company

  • Enter Company details such as Mailing details.
  • Select the Country from the List of Countries under the field, Statutory Compliance for.

Enabling Service Tax in F11 Features

Go to Gateway of Tally > F11: Features > Statutory & Taxation

  1. Set Enable Service Tax to Yes
  2. Enable Set/Alter Service Tax Details to Yes to view Company Service tax Details screen

  1. In Company Service Tax Details Screen
  2. In Service Tax Registration No. field enter the service tax registration no of the company allotted by the Service Tax department
  3. In Date of Registration field enter the Service Tax Registration date
  4. Enter the Service Tax File No. (The File No. is the Ledger Folio number)
  5. Select the Method of adjustment of Expenses from the List of Adjustment Methods
  6. First Receipt: The expenses are first adjusted from the amount received and then the rest of the amount is adjusted against Service fee and Tax account.
  7. Last Receipt: The expenses are adjusted from the last receipt of the bill amount
  8. Proportionate: The payment received from the customer is proportionately adjusted against fee, tax and disbursement

Accept the screen to save.

To create a Customer ledger

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

  1. In the Name field enter the name of the company to which the services are provided e.g. Icons Computers
  2. In Under field select Sundry Debtors from the List of Groups
  3. Set Maintain balances bill-by-bill to Yes.
  4. Enter details in the Default Credit Period if applicable
  5. Set Is Service Tax Applicable to Yes to view the Exemption Details screen to display

  1. In the Exemption Details screen
  2. In Type of Classification select Not Applicable. The option Exempt will be selected when the tax is not payable

  1. Enter the Mailing details and Tax information

  1. Accept the screen to save

Similarly, you can create Supplier ledgers.

To create Service Tax ledger

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

  1. In the Name field enter the Name of the Ledger
  2. Select the Group Duties & Taxes in the Under field
  3. In Type of Duty field select Service Tax from the list of Types of Duty/Tax
  4. In Category Name files select Accounting Services (619) from the List of Service Categories

  1. Set Inventory Values are affected to No, which can be set to Yes if applicable
  2. Accept the screen to save.

To create Sales ledgers for Services

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

  1. In the Name field enter the name of the Ledger. e.g. Sales – Accounting Services
  2. Select the Group Sales Accounts from the List of Groups in the Under field
  3. Set Inventory Values are affected to No
  4. Set Is Service Tax Applicable to Yes to view Category Name screen
  5. In Category Name field select Accounting Services (619) from the List of Service Categories

  1. Set Used in Sales Tax to No
  2. Accept the screen to save

Similarly, you can create ledgers for various services.

Creating Ledgers for Indirect Expenses

An Expenses ledger has to be created to claim the expenses.

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

  1. In the Name field enter the expense ledger name e.g. General Expenses
  2. Select the Group Indirect Expenses from the List of Groups in the Under field
  3. Set Inventory Values are affected to No
  4. Set Is Service Tax Applicable to Yes to view Category Name screen
  5. In the Category Name screen select Accounting Services (619) from the List of Service Categories

  1. Accept the screen to save

    Mahendra Rana

    Mahendra is founder and CEO of the I Vision Infotech, Authorised Tally Sales and Service Partner and helping Tally users to learn Tally and accounting free through this site

    Click Here to Leave a Comment Below
    Sunil Kumar Gupta - 6 years ago Reply

    Sir
    I Just want to Clear my Doubts regarding configuration settings
    e.g how to configure multi coloumn Day book i.e in one coloumn for journals(Sales/Purchase/bank etc)
    & other for Cash entries

    Sunil Kumar Gupta - 6 years ago Reply

    Sir,
    I am using Busy accounting Software now I am interested to buy latest Tally ERP (Audit version) But huse Rate difference I can sepend Maximum upto Rs 8,000/- Please Find The wayout

    Mahendra Rana - 6 years ago Reply

    Dear Sunil
    Thanks for your interest in tally products.
    Audit Version of tally.erp 9 is available only to C.As and for rest of users they have to buy tally.erp 9 single /multi user at the normal price. and for Single use the price is 13,500.

    Sunil Kumar Gupta - 6 years ago Reply

    RESPECTED SIR
    1. CAN YOU PROVIDE ME A TRIAL VERSION OF ERP9 ACCOUDING TO MY REQUIRED CONFIGURATION
    2. HOW TO CONVERT MY BUSY ACCOUNTING SOFTWARE DATA TO TALLY ERP9 PRACTICALLY
    3. MULTI COLOUMN DAY CUM CASH BOOK
    4. HOW TO DISPLAY/ PRINT MULTI COLOUMN CASH BOOK WITH DAILY OPENING & CLOSING CASH BALANCES IN ERP 9
    5. FORM ST-3 NOT SHOWING TOTAL OF SIX MONTH ie TOTAL OF APRIL TO SEPT, THIS FUNCTION IS THERE IN TALLY 9
    AND SO MANY OTHER QUARIES
    SUNIL KUMAR GUPTA 09988108951, 3325 SECTOR 23-D CHANDIGARH

    Mahendra Rana - 6 years ago Reply

    Dear Sunil,
    Educational version is available from the site http://www.tallysolutions.com please download the same.

    emraan - 6 years ago Reply

    tally sort cut keys very amezing to your side

    Hitesh soni - 6 years ago Reply

    Dear Sir,

    I Want to know about P.F And Entry prosess in Tally 9 ERP.

    Manikandan - 5 years ago Reply

    Dear Sir,

    How to calculate Service tax cash bill

    parveen kumar - 5 years ago Reply

    DEAR SIR

    I WANT TO KNOW ABOUT ESI AND ENTRY PROCESS IN TALLY 9 PLEASE AS SOON AS POSSIBLE GIVE ME REPLY

    sonu saini - 5 years ago Reply

    how to create school project in tally erp 9 and give this

    vijay - 5 years ago Reply

    Dear sir,
    i am allready your student from info@xxxxxx
    we have update new release 3.1 now in service tax payment, we received payment from party with cut of tds amount so how to set default service amount pls send reply

    Vijay

    Mahendra Rana - 5 years ago Reply

    Dear Vijay,
    All are student here.
    but all students can not get the free support.
    only those Tally users who have purchased or renewed their Tally.net subscription through us can be able to get our free support.
    I have checked your Tally.net subscription which is expired on 31.5.2011 and has not been renewed.
    So, please consider it to renew through us to get our free support

    NILESHRAJPUT - 5 years ago Reply

    how calculate tds in tally 7.2 and what starting procedure and what ledger create in tally for tds please detilas information submit me and what calculation in form of various type for tds fill in to from tally

    anil - 5 years ago Reply

    how to create the service tax ledger and how to do the entry please send me with a chart …

    babita - 5 years ago Reply

    Its a nice post. thanks for sharing this information.
    Please tell me How POS calculate in tally?

    Mahendra Rana - 5 years ago Reply

    Thanks Babita for your feedback.

    But I have noticed that you are already teaching Tally online! than why you want to learn it from us ? or are you just copy pasting content ?

    RATANKUMAR ASTHANA - 4 years ago Reply

    how to make tally erp9 service tax categary, how we can see service tax payble/ reciable computation after posting serve chg bill.

    vikas vijaywargiya - 4 years ago Reply

    Hello sir,
    i am vikass & i have problem in service tax entry please solve it.

    Nilesh - 4 years ago Reply

    Sir there is a persone who owne a hotel ( Sales only Dosa and Idely His turnover is Less than 10 Lacs ) & serves food to public as well doing catering business for parties and marriges. He also don’t sale alcohol In his premises except coal drinks. He does not have AC in his premises.
    Should he Pay Service TAx Or Sale TAx.
    If service tax has to paid Would he need to pay sale tax for anything else or the same.
    OR
    If Sale tax has to paid Would he need to pay servie tax for anything else or the same.
    and If Any of the above condition is aplicable how would i Prepaire his account specialy for sales tax. Bcoz there is lots of purchase from Unregistered Dealer … Different kind of product is Being use for Making food. and VAT rate for those goods are different how would i Make entry for those purchased goods in Tally ……… and how would i show sales and on what Rate. I live In MP
    Please any one Answer this i Would Really be so thankfull of him..Pls answer it….Please Its Urgen

    waseem - 4 years ago Reply

    dear sir,

    tell me the perfect institute of tally in delhi,i want to learn taly

    MOHAMMED SHABEER - 4 years ago Reply

    DEAR SIR , WE HAVE ALREADY GOT SOME DISCOUNT AMOUNT IN A PARTY ,BUT BECAUSE OF SOME PAYMENT DELAY PROBLEMS THEY REVERSED OUR DISCOUNTS SO HOW WE WILL PASS THIS ENTRY IN JOURNAL ?
    I HOPE YOUR FAST REPLY

    dasiyesu - 3 years ago Reply

    Dear sir,

    Pls the how to service tax and Tds E-filing return in online pls help me

    Pramodini B.O.N - 3 years ago Reply

    Dear Sir,

    My Name is pramodini, I want to Know about Service Tax, Tds & Vat Process From Begining to End. Plz Give me Guidance

    Thank u

    Pramodini B.O.N - 3 years ago Reply

    DEAR SIR,

    GOOD MORNING, I am praamodini, working as assistant accountant in a company, Sir i Need to Learn Duties And taxes So plz Help Me to Learn Vat, Excise duty, Service tax And Tds diductions And How To Make payment to government….

    With Regards
    Pramodini

    pramodini. B.O.N - 3 years ago Reply

    Dear sir,

    i want to clear some doubts about duties & taxes, Please Help me…

    jagadeesh - 3 years ago Reply

    thns sir giveing apt sir

    sandeep kumar - 3 years ago Reply

    sir,
    i want to know the process of GST

    mona - last year Reply

    i want to create service tax 14%. i want to put service invoice it shows that service tax12% ed 2% sec1 totally 15% ah. is it correct to help me

    surya - last year Reply

    i want to create service tax 14%. i want to put service invoice it shows that service tax12% ed 2% sec1 totally 15% ah. is it correct to help me

    seema - last year Reply

    how to calculate service tax 14 percent in tally please recommend

    Mahendra Rana - last year Reply

    Are you using latest Version of Tally.ERP 9? then set up the SErvice tax configuration from the F11 then ledger master.

    suchi - 6 months ago Reply

    is it compulsory- input vat should less than output vat
    pls tell me

    Mahendra Rana - 6 months ago Reply

    No, there is no such rules

    SUVADIP DEY - last week Reply

    I HAVE TALLY ERP9 VERSION 4.93 STAT:264 I WANT TO KNOW ABOUT GOOD TRANSPORT BY ROAD I.E. TAX ON SERVICE RECEIVED. HOW TO ENTRY GTA AT PRESENT RATE @ ST:14 %, SBC: .5%, KKC: .5% BASIS THERE IS NO OPTION SBC & KKC IN TAX ON SERVICE RECEIVE.

    Mahendra Rana - last week Reply

    Tally has provided the patches for these options and same is available with Tally in the version you are using.

    Please contact your Tally Partner or mail to support at Tallysolutions.com along with your serial number. If you are a paid user they will surely help you.

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