Summary of Post
- 1 Step1-Update Tally ERP 9 Statutory Files to Latest version
- 2 How to Update Statutory Masters in Tally.
- 3 Configuration of Service Tax in Tally.ERP9 Release 4.93 and older/ former versions
- 4 Step 2-Activate Service tax
- 5 Step -3 Ledger creation for service tax in tally erp9 release 4.93
- 6 Create Dry cleaning Service sales Ledger
- 7 Creating Party Ledger as service receiver
- 8 Creating Service Tax Ledger
- 9 Creating Swachh Bharath cess in Tally ERP9 Release 4.93 and lower versions
- 10 Creating Krishi Kalyan Cess in Tally ERP 9 release 4.93 and below.
- 11 Service tax invoice or voucher entry with SBC & KKC in Tally.ERP 9 Release 4.93 and below.
- 12 Making Service Tax Payment
- 13 Service tax report in Release 4.93 and lower versions.
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.
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.
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 .
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.
Step 2-Activate Service tax
Go to Gateway of Tally> F11 Features > F3 Statutory Features
Press enter You will get a company service tax details screen.
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.
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.
The Party ledger creation look like below image.
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
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 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.
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.
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%
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
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.
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.
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