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Service charges Invoice or bill creation & Format in Tally ERP 9

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You might be a running a service business like a consultancy or advertising services,Beauty parlor or cargo handling business.All these businesses does not involves any trading of stock or goods. Here we are trading a service or our skill. In such case many beginner accountants are getting confused how to create a service invoice or service bills. the common questions they are asking are.

  1. Is there any specific format for service billing?
  2. Shall I create a service head under sales account or Income account?
  3. Which voucher shall we use to generate service bill?
  4. Is there any difference between creating item billing and service billing?
  5. How to create service bill?

This article is the answer to all such questions known to me and is more useful for small service providers who do not falls under the ambit of service tax.

Recommend read:

Is there any specific format for service bill?

As on today govt: has not issued any notification regarding specific format of service invoice. But a service bill must contains the following information.

What are the essentials of a service Invoice?

  1. Bill Number or Invoice Number: The bill number should be serially numbered.
  2. Name and address: The name and address of registered premises with contact details like email & phone numbers.
  3. Registration Number of service provider: As you know if your turn over crosses 9 lakhs in a year, You should register to a service tax department.If a your’s is a registered business show the registration number in the Invoice.
  4. PAN of the service provider: The PAN number of service provider can be mentioned in Invoice but not mandatory.
  5. Name and address of Service receiver: The name and address of your customer or service receiver to whom you are providing service.
  6. Registration Number & PAN of service receiver: It is a good practice that displaying PAN number and Service tax registration number of customer.
  7. Description of service: The description and classification of service provided or to be provided
  8. Amount of service : The amount of service provided or to be provided.
  9. Service tax amount: If a registered user, show the amount of service provided. The service tax amount should be shown separately so as to facilitate the CENVAT Credit for the service receiver. If service tax amount is collecting and your turnover crossed 10 lakhs .You have to pay the service tax from your own pocket.( Only if applicable)
  10. Swachh Bharath Cess:Show the swachh bharath cess separately in invoice if any.( Only if applicable)
  11. Krishi Kalyan Cess: Show Krishi Kalyan Cess should be shown separately in service bill if any.( Only if applicable)

Vouchers used to raise service bill?

You can use receipt & sales vouchers to bill service charges.

Create Service Head in Tally ERP 9?

You can create service head under Sales Account or under Direct Income head. If you want to create a service bill using sales voucher, then create it under Sales account or want to raise invoice using receipt voucher create it under Direct Income.

Generate service bill using receipt voucher

Normally a professional issue receipt for service provided.In such case while entering a receipt voucher we can issue service bills with service tax.

Example: 01-04-2016 ABC LTD Render Interior decoration services to  SRK CREATIONS For Rs 15000.00 Service tax  2100 Swachh bharath cess : Rs 75 Krishi Kalyan cess. Party gives acheque bearing no 54656 of PNB.

Step 1 Activate Service tax

Activate Service tax from Features only if service tax applicable to you otherwise skip this step.

Go to

F11 Features> F3 Statutory Features

Enable service tax : Yes

Enable service tax

 

Save the configuration.

Step 2: Create the Masters

Create the following master, Ledgers as explained in the table.

Ledger Under Is Service Tax Applicable Default Service Category
Interior decoration services Indirect Incomes Yes Interior Decorators
Ledger Under Is Service Provider/Receiver Set/Alter Service Tax Details
SRK Creations Sundry Debtors Yes – Enter registration No,Types of service as taxable.
Ledger Under Type of Dutyr Tax Head
Service Tax Duties & Taxes Service Tax Service Tax
Swachh Bharath Cess Duties & Taxes Swachh Bharath Cess
Krishi Kalyan Cess Duties & Taxes Krishi Kalyan Cess

Step 2: Record Receipt Voucher

Go to

Gateway of Tally>Accounting Voucher>F6 Receipt

Select the bank, select the interior decoration ledger

Interior decoration receipt voucher

Press enter. Bank allocation screen will appear fill that also and save.

Step 3- Printing Service Tax Professional Receipt Cum Challan

Now  print the voucher by accessing receipt in alteration mode. In the Print dialogue box activate the option

Print Service Tax Professional Receipt Cum Challan :Yes

Print service tax professional cum receipt challan

Then Print the service tax receipt cum challan.

Service tax professional receipt cum challan

Note: In this Invoice there is a drawback in latest release of Tally.ERP 9. No option found for Challan printed in the name of customer when using Service Tax Professional receipt cum challan. I checked every where, Nothing found to solve this problem.Now I have mailed to tally @ support hope  they will address my query.

Generate Service Invoice Using F8 Sales Voucher.

Let’s take the same above example.Change the Mian group of Service head Under sales Account.Rest of all vouchers are same.

Ledger Under Is Service Tax Applicable Default Service Category
Interior decoration services Sales Account Yes Interior Decorators

Go to gateway of Tally>Accounting Voucher> F8 Sales

Click On Accounting Voucher button at the right button panel.

Accounting Voucher button

Enter Party name ,service ledger, service tax,SBC,KKC as shown in the below figure.

Service sales voucher

 

Now print the voucher.

Service invoice using sales voucher

Hope You got an idea about service invoice preparation. Please ask me for any clarification.

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