This is a purely service industry and there is no inventory as such, they have specific billing requirements and have a rebate of 60% to 75% even this is changeable.
We will take a case where a booking is done by a customer for travelling, food and other expense.
We will charge all of that and in addition to that charge a service tax. Now there is a rebate of 60% in this department. If you have a greater rebate, you can mention that with the SL/Notification number and can avail that abatement.
We have taken the customer by the name of Traveller.
Now when the customer comes to us, we do the booking of this – this is a sales order for us.
We create the ledgers as :-
The items are created as follows, we show the multi Item creation mode for faster creation as I->I->R
Sales order voucher alteration as :-
The sales order numbering may be set as :-
The Sales order is created as :-
Now individually the details for each item is entered as:-
Just in case you ( you want to know how a service ledger is created:-
Now we go to accounting vouchers and then Press F8:-
The sales order- is tagged with the sales voucher :- The breakup of this voucher is shown as :-
The allocation for Hotel charges
As of now the service tax payable is shown as D–>O–>Service Tax Computation :-
Now a partial receipt is made as:-
The second receipt is made after 2 days :
Now the service tax payment is made to the Govt. using the autofill feature:-
Alternatively You may use the simpler method to make the payment as :-
Now we view the service tax computation after the payment is made and it shows:-
Here notice that Balance service tax payable is nil now 🙂
Now let us analyse the balance sheet as on 4th of the month where the payment was not made to the Govt.
The amount of Rs. 17165 was pending to be received from the debtor, however the Profit would remain the same.
After the receipt of the pending due and making the tax payment,
finally the balance sheet as on 30th April gives us the report as:-
PS* Please note all articles on the site are based on imaginary scenarios & are for educational purpose only.The author holds no responsibility of any form whatsoever.