Creation of Party Ledger for Service Tax Part 1

To record collection and payment of Service Tax, certain ledgers are to be created with certain configuration changes with respect to Service Tax.
First create a Party ledger as usual, just set the option "is Service Tax Applicable" to 'yes'.

Service Tax Exemption Details

Here you have to enter the details of exemption for parties, where service tax is applicable but exempted. Enter the details there:

Is Exempted : Enter 'yes' if the party is exempted from the tax payment by any Government Notification, if not then enter 'no'.

Notification Details : In case the "Is exempted" is set to 'yes', the Notification Details appear. Here you have to enter the details provided in the Notification.