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Service Tax in Tally.ERP9 release 4.93 & below with Krishi Kalyan cess & SBC

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Today we will learn how to implement service tax with Krishi Kalyan Cess & Swachh bharat cess in Tally.ERP9 Realse 4.93 and below. After Tally.ERP9 Release 5 and above, The method used for service tax computation is totally changed and become more accurate and user friendly. However there are users still want to use service tax in older versions of Tally.ERP9  Like 4.93 , Release 4.92 & 4.91.

Recommend read: Implementation of service tax in Tally ERP9 realease 5 and above with Krishi Kalyan cess and swachh bharath cess.

Step1-Update Tally ERP 9 Statutory Files to Latest version

As on today 03-06-2016, The latest statutory file version available is version 261. You can download this version from Tallysolution.

Download statutory Masters version 261 from Here.

How to Update Statutory Masters in Tally.

To update statutory master do as instructed below.

  • Unzip The Downloaded file Stat.zip to you computer.
  • Copy the File to your Tally.ERP 9 Folder, if you don’t know where the software folder is located, right click on the tally icon from your desktop, click properties, then open file location. The software folder will open. In most cases the software folder is located C:\Program Files\Tally.ERP9. Paste the copied file in this folder and replace existing stat.900 file .

New statutory file updation

Now You have updated to the latest statutory file version, You can see it in configuration panel in the bottom of the software.

Configuration of Service Tax in Tally.ERP9 Release 4.93 and older/ former versions

Lets have the following scenario for the service tax setup.

ABC Ltd provides Dry cleaning service worth Rs 15000 to the client Victory agencies on 01-06-2016. The service tax is calculated as follows.

  • Dry cleaning service          =    15000.00
  • Service Tax 14 %                =      2100.00
  • Swachh Bharath cess SBC  =         75.00
  • Krishi Kalyan Cess             =          75.00
  • Total Invoice Value             =   17250.00

Step 2-Activate Service tax

Go to Gateway of Tally>  F11 Features > F3 Statutory Features

Enable service tax,set alter service tax in f11 features f3 statutory features

Press enter You will get a company service tax details screen.

Company service tax details

Press enter to accept the configuration

Step -3 Ledger creation for service tax in tally erp9 release 4.93

Next step is to create required ledgers

Create Dry cleaning Service sales Ledger

Go to Gateway of Tally> Accounts info> Ledger >Create

Create Dry cleaning Service Ledger Under sales Account

  • Is Service tax applicable: Yes
  • Default Service category: Select  Dry cleaning service from the list or as your case may be.

Sales dry cleaning service ledger

Creating Party Ledger as service receiver

Create a party ledger under head sundry debtors

Is Service Provider/Receiver : Yes

Set alter Service tax details : Yes, will direct you to new screen where service tax details can be entered.

Service tax details for party ledger

The Party ledger creation look like below image.

Customer Ledger creation for service tax

Creating Service Tax Ledger

Creating a service tax ledger for accounting of service tax collected is the next step.

  • Name: Service tax
  • Under : Duties & taxes
  • Type of duty: Service tax
  • Tax head : Service tax

Service tax ledger in tally erp9 release 4.93 and below

Save& accept the screen.

Creating Swachh Bharath cess in Tally ERP9 Release 4.93 and lower versions

Now creating a swachh bharat cess ledger, a lot of users are confused about creating this in versions prior to release 5.

  • Enter the name of Ledger
  • Under Duties and taxes
  • Type of duty: Others on selecting this option SBC & KKC activated.
  • Use for Swachh Bharat Cess :Yes
  • Use for Krishi Kalyan Cess: No

Creating swachh bharat cess in tally erp9 and below

Creating Krishi Kalyan Cess in Tally ERP 9 release 4.93 and below.

Now let’s learn how to create Krishi kalyan cess in Tally ERP 9 lower Verisions of release 5.

  • Name: Krishi Kalyan Cess
  • Under: Duties and taxes
  • Type of duty: Others.
  • Use for Swachh Bharat Cess :No
  • Use for Krishi Kalyan Cess: Yes – This option is appearing because we have updated our statutory versions to latest.

Krishi kalyan cess creation itally erp 9 release 5 and below

Service tax invoice or voucher entry with SBC & KKC in Tally.ERP 9 Release 4.93 and below.

Now Lets enter the above example in service invoice voucher.

Gateway of Tally > Accounting Voucher > F8 Sales

Select Account invoice button or press shortcut key Alt + I to enter transactions in  Account invoice mode. Change the date

  • Ref: Enter reference number if any
  • Party A/c Name: Victory Agencies in our example select the customer name to whom the service is provided.
  • Particulars : Sales-Dry cleaning Service or select the service sales ledger created by you. and press enter key.You will get another screen where service details and tax details can be entered
  • Types of Ref : New ref
  • Name: Here ref name , the invoice number automaticaly selected
  • Service amount : In our example Rs 15000, The service tax ,swachh bharat cess and Krishi Kalyan cess automatically calculated as shown in the figure below.

Service tax details in service voucher of SBC & KKC

Press enter and save the screen.

  • In the next line Select service tax ,amount automatically appear
  • Swatch Bharath cess in the next line and amount will be calculated automatically.
  • Krishi Kalyan Cess in the next line and amout calculated as per rate 0.5%

Service tax invoice in swachh bharath cess and Krishi kalyan cess in tally erp9 release 4.93 and lower

 Note : Krishi Kalyan Cess will be calculated from 01-06-2016 on wards, The voucher entered prior to that date, No KKC will be calculated.

Making Service Tax Payment

You can make service tax payment through  Stat payment voucher .Swachh bharat cess and Krishi Kalyan cess should be paid seperately.

Gateway of Tally> Accounting Voucher> F5 Payment> Stat Payment ( Alt+S)

  • Choose the payment date ,Lets say 1-07-2016
  • Type of Duty/Tax :Service Tax
  • Auto Fill Statutory Payment: No

Statutory payment

Press enter

Account : Select the payment mode ,bank or cash account

Particulars: Select Service tax ,Bill wise allocation screen appear, choose Agst Ref Pending tax bill details appear.

Pending tax details

Select the bills, you want to make payments and save

  • In the next line select Swachh Bharat Cess and its amount ( Enter amount manually).
  • Third line select Krishi Kalyan cess and its amount ( Enter amount manually)..
  • Press enter  and enter bank details and save the voucher.

Service tax payment for below tally erp9 5

Press Enter & Accept the screen.

Service tax report in Release 4.93 and lower versions.

As the Swachh Bharat cess and Krish Kalyan Cess is the latest taxes, You will not get comprehnsive report and return in Tally.ERP9 Realese 4.93. For getting complete report You have use Tally Latest Version Release 5.3.8. You have fill GAR 7 and return Manually.

You can See the Computation report below

Service tax computation report

Learn Service Tax Setup With SBC & KKC in Tally Here

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