Drushtant Infoweb Pvt. Ltd

Sale of Services with Inventory

Sometimes, back, I have written an article on how to create an item ledger with vat and excise duty details, so that the sales invoice entry will automatically pick the duty calculation on the item.

In response to the same, some of my readers including Mr. Gautam and Mr. Shahid have raised query on how to create an item with service charges excluding vat on service/repairing income ?

Here is the solution to this problem.

Let’s assume  on 28-08-2010   Red Express Company sold 10 Nos. Auto parts @ 1500 per Part  to M/s.Zoom Auto co. along with a repairing charges of Rs. 5000.00

To account the above transaction

1. Create Income Ledger : Repairing Charges (Income) under the group Direct Income.

2.Set Inventory Values affected to No

IF you are not under the preview of service tax then set no to service tax filed under statutory details.otherwise set     it   to yes.

3.Set No for used in vat returns, and used for assessable value calculation

4. Record the Transaction in Sales Voucher

Go to Gateway of Tally > Accounting Vouchers > F8: Sales

  1. In Accounting Voucher Creation screen, press Alt+I or click on I : Item Invoice if the voucher is in Account invoice mode
  2. Press F2 and change the date to28-8-2010
  3. In Party’s A/c Name field select the service receiver Zoom Auto Com
  4. In Name of Item field select Computers and specify Quantity as 10 and Rate as 1500
  5. In Accounting Details screen ledger select the Sales Ledger and press Enter

6.   after entering item details, press enter it will ask for secondary /additional ledger income detail

7.   here select  Repairing charges Income ledger as created above

8.   Now select out vat amount. it will be calculated only on the item price excluding the repairing charges income.

9.   Accept the screen.

Be sure, above solution works only with tally.erp 9 release 1.61 or higher. I would recommend you to renew your TNS and upgrade your tally.erp 9 to release 2 to avail a host of benefits.

If you face any problem, please post your query on support forum


  1. Jai

    Sir, we are purchasing Rawmaterials as Yarns and Selling it as a Fabric how can i convert the Rawmaterial in to fabric and how to show in fabric stock

    1. Jai,
      Have you read the articles carefully ? I have clearly requested to post your queries on support forum only

  2. prabhakar

    iam prabhakar from vijayawada
    how to prepare the payroll what is pay roll how help to the company any organatione & how to use the vochartypes option and plese difance company invoice & agecency invoice & distbbtuor invoice how to the prepare day by day entary in tally plese my reqasts ur answesr by exmples

    1. Prabhakar,
      The only answer to all your queries is read as much as possible on the site http://www.tallynine.com first try to learn yourselves.If you face any problem then raise your problem on the support forum and i will be more glad then you to assist you. BUT somehow it is not possible to explain everything in example. One should try to learn thyself.

  3. Sumana

    how shall i download tally?
    please send me a link.


    1. Sumana,
      you can download it from the download section of the site

  4. Hasmat Ali

    I want to Know About Groups in Tally 9.0 Pleae tell me about all grous with definetion?I will wait Your Answer.

  5. venkata ramana

    how to prepare the journal entries in construction companies. client bill entries ? ( like work done, chq.received and client deduction tds,servicetax,nac,seignorage,mobilisation advance etc.)

    1. Dear Venketa Rama
      I am not into a wholesale business of providing solutions.
      Please ask one question at one time and that too only on support forum
      Multiple questions in one post always rejected by me.

  6. Manohar Swamy

    I want to do tractor showroom account. In this main problem is
    1.Showroom take old tractor in exchange, on this always there will be loose.
    2.On old tractor repair and Insurance and tax due paid by the showroom.
    3.Some time showroom will sell the tractor to one person and trally to another person.
    How to write all these entries. I want the answer in two models
    1.By J.V
    2.By creating all the Heads

    I request all the viewers please help

    1. Manoharji,
      All queries are very much welcome at Support forum
      I will be happy to see and solve your query on the support forum

  7. Jayprakash pandey

    I wanted to Know how the petty cash Entries record in tallyErp9.
    please send me steps How to rwcord it.
    I am waiting for your answer.
    please send me proper answer.

    1. Jaiprakash,
      First you need to learn how to ask for support in a polite and decent manner. Sometimes people ask questions as if they are CEO or boss !
      Further if you are not sure that somebody will not give you a proper answer then Don’t ask for support. Get a proper answer yourself.
      I don’t like this kind of nonsense stuff on this forum

  8. Lal

    how to enter multiple tax items in tally invoice with vat calculation automatically ?

  9. sathisgopi

    hello sir,

    how to create excise sales with additional duty before vat% added. how to calculation of vat with additional duty in tally.

    pls reply

  10. manoharswamych

    Thanks for my previous question. Sir my second question in expenditure I want to maintain cost center here I created on head as vehicle maintain this diesel and vehicle repair are the subheads. In another cost center diesel is the main head and diesel is the sub head when I am creating sub heads diesel is intimating as double entry

  11. seema


    How to set quantity & Rates in sales of services (sales invoice)

  12. Issue with Printing Invoice comprising of Stock Items and Service Items. The Stock Items appear correctly in Invoice as Left Justified (Particulars). Whereas Services appear as Right Justified (like TAX).

    Is it possible for all to appear left justified (except TAX) on the Invoice?

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