Lesson 57 – How to configure Service Tax 14.5% in Tally.ERP9 Release 5.1 and above

In latest amendment in Service Tax (Education Cess @ .5% applicable as Swachh Bharat Cess). But now problem is how to configure this Swach Bharat Cess in Tally.
How to Configure Service Tax 14% with Swach Bharat Cess @ 5% in Tally.ERP9 release 5 and above?

On Gateway of Tally: Press F11: Statutory & Taxation:

Enable Service Tax: Yes
Set Alter Service Tax Details: Yes
Enter Your Service Tax Registration No., Select type of organization, set alter service tax details to yes (Enter Services Rendered – Service Tax 14% and Education Cess @ .5%),  Define Service tax category – Yes, If reverse charge is applicable then select yes otherwise No.

Now create ledger (you can create your own services ledger) Services Rendered under Sales Account. Set Inventory to Yes.

Create Service Tax Ledger under duties and taxes – Type of Tax – Service Tax
Create Education Cess (or Bharat Swach Cess) Ledger under duties and taxes – Type of Tax – Education Cess.

Now Create a Sales voucher. See Below video for full tutorial.

RECOMMENDED READ  Taxation of works contract services under Service Tax
Latest Comments
  1. Practice One

    Great and valuable post.Every line have something new to learn and this post is really very helpful.I like the way you have expressed your ideas and found this article interesting to read.

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