Creation of Service Income/Expense Ledger Account

After the Service Tax Registration Particulars you have to create Service Income/Expense Ledger Account. Service Income Ledger is to be created under sales account group or under direct income group. Enter the following details while ledger creation :

Is Service Tax Applicable : Set 'yes' for service incomes, if taxable under Service tax.

Inventory values are affected : Set 'yes' for this option if you want service tax to be computed automatically.

Creation of Party Ledger for Service Tax Part 2

After entering the Service Tax Exemption Details the Service Tax Registration particulars are to be provided.

Party Service Tax Registration Particulars

Here the following informattion are to entered :

Service Tax Number : Service Tax registration number of the party is to provided here.

Service tax Registration Date : The Service Tax Registration date of the party is to be provided here.

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.

Service Category Profile

New service categories are added to the Service Tax list by the Government on a regular basis. You can view the profile of different Service Categories of service from time to time and also update profile with the help of Tally. In order to view the categories you have to go to Display from Gateway of Tally then go to Statutory Info and then Service Categories. A list of Service Categories will be provided. Select the category for which you want to view detailed profile, then the service category screen will display the category code, accounting code and date from which Service Tax is applicable, Tax rate, Cross rate and abatement.