How to set up Service tax duty ledger in Tally.erp 9

As we have seen that service tax module in tally.erp 9 release 1.8  has been completely re written and it is giving a perfect solutions to service tax requirement of any enterprise.

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However, one need to renew tally.net license to download the latest release 1.8 of tally.erp 9 as the new service tax module is available only with release 1.8 and above.

Company Creation

Go to Gateway of Tally > Alt + F3 > Create Company

  • Enter Company details such as Mailing details.
  • Select the Country from the List of Countries under the field, Statutory Compliance for.

Enabling Service Tax 1

Enabling Service Tax in F11 Features

Go to Gateway of Tally > F11: Features > Statutory & Taxation

  1. Set Enable Service Tax to Yes
  2. Enable Set/Alter Service Tax Details to Yes to view Company Service tax Details screen

Enabling Service Tax 2

  1. In Company Service Tax Details Screen
  2. In Service Tax Registration No. field enter the service tax registration no of the company allotted by the Service Tax department
  3. In Date of Registration field enter the Service Tax Registration date
  4. Enter the Service Tax File No. (The File No. is the Ledger Folio number)
  5. Select the Method of adjustment of Expenses from the List of Adjustment Methods
  6. First Receipt: The expenses are first adjusted from the amount received and then the rest of the amount is adjusted against Service fee and Tax account.
  7. Last Receipt: The expenses are adjusted from the last receipt of the bill amount
  8. Proportionate: The payment received from the customer is proportionately adjusted against fee, tax and disbursement

Enabling Service Tax 3

Accept the screen to save.

To create a Customer ledger

Go to Gateway of Tally > Accounts Info > Ledgers > Create

  1. In the Name field enter the name of the company to which the services are provided e.g. Icons Computers
  2. In Under field select Sundry Debtors from the List of Groups
  3. Set Maintain balances bill-by-bill to Yes.
  4. Enter details in the Default Credit Period if applicable
  5. Set Is Service Tax Applicable to Yes to view the Exemption Details screen to display

Creating a Customer Ledger 1

  1. In the Exemption Details screen
  2. In Type of Classification select Not Applicable. The option Exempt will be selected when the tax is not payable

Creating a Customer Ledger 2

  1. Enter the Mailing details and Tax information

Creating a Customer Ledger 3

  1. Accept the screen to save

Similarly, you can create Supplier ledgers.

To create Service Tax ledger

Go to Gateway of Tally > Accounts Info > Ledgers > Create

  1. In the Name field enter the Name of the Ledger
  2. Select the Group Duties & Taxes in the Under field
  3. In Type of Duty field select Service Tax from the list of Types of Duty/Tax
  4. In Category Name files select Accounting Services (619) from the List of Service Categories

Creating a Tax Ledger 1

  1. Set Inventory Values are affected to No, which can be set to Yes if applicable
  2. Accept the screen to save.

To create Sales ledgers for Services

Go to Gateway of Tally > Accounts Info > Ledgers > Create

  1. In the Name field enter the name of the Ledger. e.g. Sales – Accounting Services
  2. Select the Group Sales Accounts from the List of Groups in the Under field
  3. Set Inventory Values are affected to No
  4. Set Is Service Tax Applicable to Yes to view Category Name screen
  5. In Category Name field select Accounting Services (619) from the List of Service Categories

Creating Sales Ledgers for Services 1

  1. Set Used in Sales Tax to No
  2. Accept the screen to save

Similarly, you can create ledgers for various services.

Creating Ledgers for Indirect Expenses

An Expenses ledger has to be created to claim the expenses.

Go to Gateway of Tally > Accounts Info. > Ledgers > Create

  1. In the Name field enter the expense ledger name e.g. General Expenses
  2. Select the Group Indirect Expenses from the List of Groups in the Under field
  3. Set Inventory Values are affected to No
  4. Set Is Service Tax Applicable to Yes to view Category Name screen
  5. In the Category Name screen select Accounting Services (619) from the List of Service Categories

Creating Ledgers for Indirect Expenses 1

  1. Accept the screen to save

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27 thoughts on “How to set up Service tax duty ledger in Tally.erp 9

  1. Sunil Kumar Gupta says:

    Sir
    I Just want to Clear my Doubts regarding configuration settings
    e.g how to configure multi coloumn Day book i.e in one coloumn for journals(Sales/Purchase/bank etc)
    & other for Cash entries

  2. Sunil Kumar Gupta says:

    Sir,
    I am using Busy accounting Software now I am interested to buy latest Tally ERP (Audit version) But huse Rate difference I can sepend Maximum upto Rs 8,000/- Please Find The wayout

    • Dear Sunil
      Thanks for your interest in tally products.
      Audit Version of tally.erp 9 is available only to C.As and for rest of users they have to buy tally.erp 9 single /multi user at the normal price. and for Single use the price is 13,500.

  3. Sunil Kumar Gupta says:

    RESPECTED SIR
    1. CAN YOU PROVIDE ME A TRIAL VERSION OF ERP9 ACCOUDING TO MY REQUIRED CONFIGURATION
    2. HOW TO CONVERT MY BUSY ACCOUNTING SOFTWARE DATA TO TALLY ERP9 PRACTICALLY
    3. MULTI COLOUMN DAY CUM CASH BOOK
    4. HOW TO DISPLAY/ PRINT MULTI COLOUMN CASH BOOK WITH DAILY OPENING & CLOSING CASH BALANCES IN ERP 9
    5. FORM ST-3 NOT SHOWING TOTAL OF SIX MONTH ie TOTAL OF APRIL TO SEPT, THIS FUNCTION IS THERE IN TALLY 9
    AND SO MANY OTHER QUARIES
    SUNIL KUMAR GUPTA 09988108951, 3325 SECTOR 23-D CHANDIGARH

  4. tally sort cut keys very amezing to your side

  5. Hitesh soni says:

    Dear Sir,

    I Want to know about P.F And Entry prosess in Tally 9 ERP.

  6. Manikandan says:

    Dear Sir,

    How to calculate Service tax cash bill

  7. parveen kumar says:

    DEAR SIR

    I WANT TO KNOW ABOUT ESI AND ENTRY PROCESS IN TALLY 9 PLEASE AS SOON AS POSSIBLE GIVE ME REPLY

  8. sonu saini says:

    how to create school project in tally erp 9 and give this

  9. Dear sir,
    i am allready your student from info@xxxxxx
    we have update new release 3.1 now in service tax payment, we received payment from party with cut of tds amount so how to set default service amount pls send reply

    Vijay

    • Dear Vijay,
      All are student here.
      but all students can not get the free support.
      only those Tally users who have purchased or renewed their Tally.net subscription through us can be able to get our free support.
      I have checked your Tally.net subscription which is expired on 31.5.2011 and has not been renewed.
      So, please consider it to renew through us to get our free support

  10. NILESHRAJPUT says:

    how calculate tds in tally 7.2 and what starting procedure and what ledger create in tally for tds please detilas information submit me and what calculation in form of various type for tds fill in to from tally

  11. how to create the service tax ledger and how to do the entry please send me with a chart …

  12. Its a nice post. thanks for sharing this information.
    Please tell me How POS calculate in tally?

    • Thanks Babita for your feedback.

      But I have noticed that you are already teaching Tally online! than why you want to learn it from us ? or are you just copy pasting content ?

  13. vikas vijaywargiya says:

    Hello sir,
    i am vikass & i have problem in service tax entry please solve it.

  14. Sir there is a persone who owne a hotel ( Sales only Dosa and Idely His turnover is Less than 10 Lacs ) & serves food to public as well doing catering business for parties and marriges. He also don’t sale alcohol In his premises except coal drinks. He does not have AC in his premises.
    Should he Pay Service TAx Or Sale TAx.
    If service tax has to paid Would he need to pay sale tax for anything else or the same.
    OR
    If Sale tax has to paid Would he need to pay servie tax for anything else or the same.
    and If Any of the above condition is aplicable how would i Prepaire his account specialy for sales tax. Bcoz there is lots of purchase from Unregistered Dealer … Different kind of product is Being use for Making food. and VAT rate for those goods are different how would i Make entry for those purchased goods in Tally ……… and how would i show sales and on what Rate. I live In MP
    Please any one Answer this i Would Really be so thankfull of him..Pls answer it….Please Its Urgen

  15. dear sir,

    tell me the perfect institute of tally in delhi,i want to learn taly

  16. MOHAMMED SHABEER says:

    DEAR SIR , WE HAVE ALREADY GOT SOME DISCOUNT AMOUNT IN A PARTY ,BUT BECAUSE OF SOME PAYMENT DELAY PROBLEMS THEY REVERSED OUR DISCOUNTS SO HOW WE WILL PASS THIS ENTRY IN JOURNAL ?
    I HOPE YOUR FAST REPLY

  17. Dear sir,

    Pls the how to service tax and Tds E-filing return in online pls help me

  18. Pramodini B.O.N says:

    Dear Sir,

    My Name is pramodini, I want to Know about Service Tax, Tds & Vat Process From Begining to End. Plz Give me Guidance

    Thank u

  19. Pramodini B.O.N says:

    DEAR SIR,

    GOOD MORNING, I am praamodini, working as assistant accountant in a company, Sir i Need to Learn Duties And taxes So plz Help Me to Learn Vat, Excise duty, Service tax And Tds diductions And How To Make payment to government….

    With Regards
    Pramodini

  20. pramodini. B.O.N says:

    Dear sir,

    i want to clear some doubts about duties & taxes, Please Help me…

  21. thns sir giveing apt sir

  22. sandeep kumar says:

    sir,
    i want to know the process of GST