Service tax is a tax which is imposed on various services. When the government first launched service tax in India then rate is 5% only. But now at that time service tax is 10.30% including 2% education cess and 1% Higher and secondary education cess. The government of India introduced about service tax in 1994.
ACC. to sec 65(41) of finance act 94 defines “service tax to means tax leviable under the provision of this chapter”.
· Service tax is an indirect tax.
· Service Tax is imposed on gross amount.
How it can be used in Tally?
First of all activate the service Tax.
- F11 à F3 (statutory and taxation)
- F3 à activate service category.
When Activate the service tax.
Fill all the necessary information which are necessary at the time of payment of service tax.
Which items are created in ledger for service Tax?
Suppose When person consult from the C.A chartered accountant) and check the account. Then Following items are created on ledger:
· Service Tax on consultation à It is the under the duties and taxes. It is under the C.A category.
· Input service tax
· Output service tax
· Audit or consultation fees à it is under the indirect income.
· Any person name is written who consult with C.A.
Go to accounting voucher (F9): When any expenses are meet by the C.A at the time of consultation then make entry in the purchaesd voucher.
Then go to sales voucher (f8)
All the payments are cleared before service tax paying.
- go to receipt voucher:
for amount received:
cash a/c --Dr.
To suresh (c.a)
- payment voucher:
cash a/c --Dr.
To BSNL
Difference between receipt and payment voucher:
- Display -->statutory report
- statutory report --> Service tax report
- Service tax report --> Service tax payable
- again make entry in payment voucher:
output 257.50
To input 103
To cash $ bank 154.50
F12 for single entry
for return:
- statutory report -->service tax report
- service tax report -->ST-3 form to see detail