ICST Institute Tally.erp9 Service Tax Notes Page1of16 120, Rakesh Marg Nehru Nagar, Ghaziabad. Ph. 0120-422 25 25, 9910863033 www.icstinstitute.com Service Tax Features of Service Tax in Tally.erp9 Service tax integrated in Tally 7.2ies takes care of your service tax transaction. It eliminates error- prone information, incorrect remittance, penalties, compliance, interest, Compliance issues, etc. service Tax in Tally ies7.2 needs a one-time configuration for service tax to be activated. Tally tracks bill-wise(bill by-bill) detail and automatically calculates service tax payable and input credit with the flexibility to make adjustment later. Service tax is part of a regular transaction. Information on service tax is maintained and produced category-wise, which is mandatory-in service tax returns. Adjust input credit towards service tax payable. Accounts for abatement and expenses. Provision for exemption notification details. Built-in assessable value feature on which service tax is calculated. Transfer earlier pending service tax payable and available service tax input credit in to Tally Reports are generated as per government suggested format. Print and file reports: TR6 Challans. Management information services (MIS) reports: service tax payable report. Entering Service Tax Details Gateway of tally→F11→ Statutory & Taxation
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ICST Institute Tally.erp9 Service Tax Notes Page1of16
Service TaxFeatures of Service Tax in Tally.erp9Service tax integrated in Tally 7.2ies takes care of your service tax transaction. It eliminates error-prone information, incorrect remittance, penalties, compliance, interest,Compliance issues, etc. service Tax in Tally ies7.2 needs a one-time configuration for service tax tobe activated.
Tally tracks bill-wise(bill by-bill) detail and automatically calculates service taxpayable and input credit with the flexibility to make adjustment later.
Service tax is part of a regular transaction. Information on service tax is maintainedand produced category-wise, which is mandatory-in service tax returns.
Adjust input credit towards service tax payable. Accounts for abatement and expenses. Provision for exemption notification details. Built-in assessable value feature on which service tax is calculated. Transfer earlier pending service tax payable and available service tax input credit in
to Tally Reports are generated as per government suggested format. Print and file reports:
TR6 Challans. Management information services (MIS) reports: service tax payable report.
Entering Service Tax DetailsGateway of tally→F11→ Statutory & Taxation
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Company Service Tax DetailsThe Company Service Tax Detail screen is where you will enter the service tax details, The name ofthe company is displayed at the top followed by different fields.
Service Tax Registration No.Enter the registration number allotted to you by the Service Tax Department.
Date of RegistrationEnter the code given to your company by the Service Tax Department.
Type of OrganizationIn this field select the type of your organization from the List of Organizations menu.
Major Service Category NameHere you will find options for different categories that corner under the service tax net. You might beproviding two or more services in a company. In such a situation, select the service category that isthe mainstay or forms the major part of your business.Select the relevant option from the List of Service Categories that applies to your company.
Credit Adjustment (%)By default this field is set to 20. Enter the percentage of credit adjustment that uou would like toavail.
DivisionCode- The code of the division in which your company falls.Name- Enter name of the division under which your company falls.
RangeCode- Enter the code of the range of your companyName- Enter the name of the Range under which your CompanyFalls.
CommissionerateCode- This is the code of the Comrnissionerate of Service Tax under whose range the
address of your registered premise is located.
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Name- This is the name of the Comrnissionerate of Service Tax under whose rangethe address of your registered premise falls.
Focal Bank DetailsFocal Bank Code The Commissionerate of Tax allots a code to banks nominated for
payment of service tax in a particular area. This code is available withcommissioner ate of Service Tax.
Focal Bank Name This is the name of the bank nominated by the commissionerate ofService tax to receive service tax payments in a particular area. Thisinformation is available with the Commissioner ate of Service Tax.
Focal Bank Address Enter the address of the branch of the focal bank.Press ‘Enter’, once you have entered the service tax details. This willtake you to the company Operations Alteration screen. Accept to savethe change.
Creating MastersCreating Party LedgersYou can activate service tax in the party ledgers at the moment of creation of ledgers or inalteration mode of ledgers. Set yes in the service tax applicable field. For parties for whichservice tax is applicable you get another screen to specify the exemption details. If Party isexempted from service tax by any government notification set Yes at Is exempted field andenter notification number at Notification details.If party is not exempted from service tax set No at Is Exempted Field.Specify service tax registration particulars of the party eg. Registration No. RegistrationDate)
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Exemption NotificationSet Yes in the is Service Tax Applicable? Field. This will display the exemption NotificationNumber screen.
Creating Service Tax LedgersYou will have to create a service tax ledger to calculate service tax. The rate of service Tax and rateof cess are predefined values in Tally and this can be changed in a transaction.Gateway of Tally→ Accounts Info→ Ledger→ Create.In this screen enter the service tax ledger name in the Name field. In the Under field, select theDuties & Taxes option from the List of Groups.
In the Type of Duty/Tax field select Service Tax from Type of Duty/Tax. Enter other details andpress ‘Y’ or ‘Enter’ to accept.Service Tax CategoryTo get the service tax category selectGateway of Tally→ Display→ Statutory Masters→ Service CategorySelect the category you want to display. It will show you code, accounting code, category code,applicability date of service tax in this category with service tax rate and cess rate.
Creating Sales Ledger for ServicesIf you are selling a service then create a ledger for the service provided. These ledgers can be inSales accounts or Direct Incomes Groups. Enter the name of the service you provide in theName field. In the under field; select sales Accounts/Direct Incomes from the List of Groups
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menu. Set the Is service Tax Applicable? Field to yes. Select the category of service form the Listof Service Categories.
Service Tax Display in Statutory MastersYou can view the values in each service category in tally. These are predefined values and anychanges can be updated from the Tally website.Gateway of Tally→ Display→ Statutory Info→ Service Categories
Select the service category which you want to view. This Service Category screen has a name fieldshowing the category. This is followed by the Code, Accounting Code and Category fields.The Applicable From column displays the period for which the Abatement (%), Service TaxRate(%), and Cess Rate (%) are applicable.
Voucher CreationSales Voucher EntryIf you have already computed service tax you may enter sales voucher in voucher mode or if youwant to get service Tax Computed use invoice mode to enter sales voucher.
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In voucher mode: Enter the sales entry as following:Dr: Party A/cCr: Income A/cCr: Service Tax (Ledger Created Under Duties and Taxes Group)
In invoice mode: select the party ledger then select the service income at sales ledger field. At tablearea, select service income ledger and enter the service charge amount. Next select the service taxledger. On selection of service tax ledger account you get a sub screen to enter the details to computeservice tax. Enter the service tax rate and cess rate. The total service tax is posted against the billreference number.
Creating Sales VouchersGateway of Tally→ Accounting vouchers (transactions/Vouchers). This will open the AccountingVoucher creation Screen. Select F8: Sales to create a sales voucher.Select the service tax ledger to be credited from the List of Ledger Accounts. This will display theService Tax Computations Screen. This screen gives details of the default values for service taxledger to be credited from the List of Ledger Accounts. This will display the service TaxComputations screen. This screen gives details of the default values for service tax in the ledger. Youcan alter these values here. There is an abatement field and Expenses field to arrive at the AssessableValue. The Service Tax and Cess is calculated and displayed. Enter a new reference in the New Reffield.
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The Bill-wise details screen is displayed. Select a new reference from the Method of Adj. Enter thedue date or credit period, if any. Enter the service Tax Ledger from the List of Service Tax Ledgers.Use the Narration field to enter other information field to enter other information. Accept to save theentries.Crediting Receipts and Payments VoucherOpen Tally, Gateway of Tally Accounting Vouchers (Transactions/Voucher). This will open theAccounting Voucher Creating screen. Select F6: Receipt to create a receipt voucher.In the Particularstable, select the company to be credited for the payment received from the options in the List ofLedger Accounts. Enter the amount received in the credit field
.
Select the method of adjustment from the Method of Adj Field and the List of Pending Bills Fromthe bill-wise details screen.
Now select the bank/cash ledger where the payment is to be debited from the list of LedgerAccounts menu. Enter the amount received in the Debit Field. Enter details of the receipt in theNarration field.
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Deposit of Service TaxTo deposit the service tax payable as per service tax payable reports, create a payment voucher,select service tax account. The bill allocation screen appears select angst ref to get the list of bills forwhich tax is payable. Tax amount payable appears as default.
Input Service TaxSome organizations buy services paying service tax. If the service is bought to render the servicesold, then service tax paid on service purchased (Called Input Credit) may be adjusted from theservice tax payable on services rendered.
At company Service Tax details at credit adjustment rate, enter the rate of service tax credit. Enterthe credit adjustment %. Normally it is 20% (where the expenses relating to tax credit are not solelyattributed to service income).
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The purchase service tax may be adjusted to the extent of credit adjustment %. Say if the rate is20% then only 20% of the input credit may be adjusted.
Service Tax ReportsGateway of Tally→ Display→ Statutory Reports→ Service Tax Reports.There are four types of reports in the menu:
TR6 ChallanService Credit FormInput credit FormST3 ReportTR6 ChallanThis report is to select a range of TR6 payment voucher to be printedin one challan to file to the government.Gateway of Tally→ Display→ Statutory Reports→ Service tax Reports→ TR6 Challan
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Service Tax PayableGateway of Tally→ Display→ Statutory Reports→ Service tax Reports→ Service TaxPayablesThis will display the service Tax Payable screen.Select the period for the report using the F2: Period option, This will display the service taxpayable for the selected period.
Input Credit FormInput Credit Form report displays details of Service Tax input credit available with thecompany for a specified date.This can be used as a supporting form while filing the half-yearly returns using the ST3report.Select the period for the report using the report using the F2: Period option. The reportdisplays input credit available up to the period of the specified date.
ST3 ReportThe ST3 Report is a statutory report. This report displays the ST3 Form in governmentprescribed format that is used to file half yearly service tax returns to the commissionerate ofService tax.Gateway of Tally→ Display→ Statutory Reports→ Service Tax Reports→ ST3 ReportUse the Alt+P key or click on Print Option to print your report.This will display the form ST-3 screen.
ST3A ReportThe ST 3A report is a statutory report. This report displays the ST 3A Form in the prescribedformat and is filed quarterly or half yearly as the case may be. This gives details of thedifference between service Tax deposited to the government and the Service Tax Liable to bepaid for each month in a memorandum in Form ST 3A, which will be accounted quarterly orhalf yearly as the case may be.
Gateway of Tally→ Display→ Statutory Reports→ Service Tax Reports→ ST 3A ReportEnter the dates of ST 3A period in the From and to fields and accept the screen.
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Dealer ExciseDealer Excise in TallyThe dealer excise functionality in Tally supports the following features, marking it easy forcomputation:
1. Easy to use2. Fast and error free voucher entry3. Complete tracking of Excise duty on each transaction4. Printing of Excise invoice with the supplier & Manufacturer details as User configurable
option.5. Reports are generated as per Central Excise Statutory requirements6. Generation of Quarterly Return in Form-2
Enabling Excise in TallyYou can enable Dealer- Excise in Tally, in the F11: Features screen.Gateway of Tally→ F11: Features→ Statutory & TaxationThe company Excise Details sub-form appears as shown below.
ECC/PAN Based Regn/Code No.The 15-Digit PAN based registration number is an alphanumeric number mentioned in theregistration Certificate. The first part would be the 10-character (alphanumeric) PermanentAccount Number [PAN] issued by the income Tax Authorities to whom the registrationnumber is allotted (includes a legal person).The second part comprises a fixed 2- character alpha-code indicating the category of theregistration. The third part is a 3-charecternumeric code.CommissionerateThe Commissionerate of central Excise is the division under which your registered premise islocated.Range
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Code: Enter the code of the range under which your company is registered.Name: Enter the name of the range under which your company is registered. Address:Enter the address of the range under which your company is registered.
DivisionCode: Enter the code of the division under which your company is registered . Name:Enter the Name of the division under which your company is registered. Address:Enter the Address of the division under which your company is registered.
Creating A Party LedgerGateway of Tally→ Account Info→ Ledgers→ CreateThe ledger creation screen appears as shown below:
1. Enter the name king in the Name field.2. Select the group sundry Creditors in the Under field.
3. In the Mailing Details section enter the supplier contact details, Income Tax and Sales Taxnumbers.
4. Set Excise Details to Yes to display the Excise Details sub form.5. Enter the Excise Registration Number of the supplier.6. Enter the Range under which the supplier’s company is registered.7. Enter the Division under which the premise of the Supplier’s Company registered.8. Enter the division under which the premise of the Supplier’s company is registered.9. Select the default Nature of purchase form the nature of purchase list. The table lists the type
of Purchase, which can be changed during transactions.Note: The Excise details sub-screen appears for ledgers created under Creditors and sundry Debtors only.
Creating Customer LedgerCreating customer ledger is similar to that of creating the ledger but it should be created undersundry debtors.Creating Stock ItemGateway of Tally→ Inventory info→ Stock item→ CreateThe Stock Item Creation screen appears as shown below.
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1. Enter the name of the Stock Item in the Name field.2. In the Under field, select the Group under which the stock Item is created from the List of
Group list.3. Select the unit for the Stock Item from the Units list.4. Set Excise Details to Yes to display the duty Details sub form as shown below.
Creating Voucher TypeThe excise Voucher Type for Purchase, Sales, Credit Note and Debit Note has to be createdbefore creating the invoices.Creating Purchase Voucher TypeGateway of Tally→ Accounts Info→ Voucher type→ Create.
Name: Enter the name of the Voucher type.Type of Voucher: Select the type of voucher as purchase from the list of voucher types.Abbreviation: You may abbreviate the Voucher type as per your requirement.Method of Voucher Numbering: Select Automatic for the method of Voucher numbering. UseAdvanced Configuration: Set it to Yes to specify the numbering method, if required.Use for Dealer Excise: Set this field to Yes to enter Excise Purchase to capture Assessable Valueand Excise Duty breakup.Accept the screen to save after entering all the details.Note: The use for dealer Excise option will appear in Purchase/Debit Note and Sales/Credit Note only and if thedealer. Excise is enabled in the F11 Features F3 –Statutory & Taxation.
Creating Sales Voucher TypeCreating Sales Voucher Type is similar to that of Creating a Purchase Voucher Type but it should becreated under the Sales Type of Voucher.Creating a Debit Note Voucher TypeA Debit note Voucher type has to be created if a Debit Note has to be passed. The voucher typeshould be created under debit Note type of voucher.Creating a Credit Note Voucher TypeA Credit note voucher type has to be created if a Credit Note has to be passed. The Voucher Typeshould be created under Debit Note type of Voucher.Creating a Purchase Invoice
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A Voucher Types created should be used for all the purchase and sales entries of Excisetransactions. The Excise feature supports Multi Currency and Voucher Class.
Gateway of Tally→ Accounting Vouchers→ Select F9: Purchase1. Select the Excise Purchase Voucher Type from the list of Voucher types in the Invoice mode.2. Enter a reference in the Ref field.3. Select the appropriate Party’s Account Name (Manufacturer/Importer Ledger, First Stage
Dealer Ledger or Second Stage Ledger) from the list displayed4. The Party Details sub-form will appear as shown below.5. Supplier’s Details
This section will include the consignee and supplier details like the contact details, Sales Taxnumber and the Excise registration details. The details will appear automatically if they areprovided during the Supplier Ledger Creation.
Note: The consignee and the Supplier details appear if Allow separate Buyer and Consignee in F12 Configuration isenabled
6. Manufacturer/Importer DetailsIf your supplier I not a Manufacturer, enter the name, address, Excise registration detailsInvoice numbers and date of Invoice, of the Manufacturer/Importer. After entering the abovedetails, the Accounting Voucher Creation screen re appears.
7. Select the Nature of Purchase from the list of Nature of Purchase. This field defines theSupplier’s role in selling the product to us.
Note: By default the Nature of Purchase selected in the Party Ledger Appears in the above field which can be changed.8. Select the Purchase Ledger.9. Select the Name of the Item and the Item Allocations Screen appears.10. Enter the corresponding details in the fields to accept the Item Allocation Screen.11. The Excise Details sub-screen for the stock item will appear.12. The Supplier Invoice No. is automatically captured from the Ref field in the Voucher
Note: the Supplier Invoice Date and the Assessable Value is automatically captured however, it I an editable field.13. The Supplier Invoice Date and the Assessable Value is automatically Captured however, it is
an editable field.14. Any additional cost apart from basic value falling under the purview of Excise can also be
included in the assessable Value field.15. The Type of Duty and the Rate of Duty defaults, as specified in the Item Masters Creation
screen.Note: The entries for the Excise Duty have to be passed in Invoice mode only.
16. Accept the Excise Details sub screen for the Voucher Entry screen to reappear.
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The Dealer Excise Reports menu consists of two reports
Excise Stock RegisterEvery Registered Dealer has to maintain Stock Register recording the daily receipt and issue ofExcisable goods ready for inspection by the officers of the department.The Excise Stock Register in Tally gives the purchase and sales information. It has two sections,which are, the Receipt section for Purchases and Issues section for the Sales/Debit Note/Credit Notedetails.
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