On all the taxable services, three heads of taxes are applicable. They are, Service Tax @ 12%, Education Cess @ 2% and Secondary & Higher Education Cess @ 1%.
In Tally.ERP9 you can create the Tax Ledger in Three ways
Single Tax ledger to account both Input service Credit and Output Service Tax of all the service Categories.
Example: Service Tax Ledger (to account tax of all the tax heads)
Three separate ledger to account both Input service Credit and Output Service Tax of all the service Categories based on the Tax Heads.
Example:
1. Common Input and Output Tax Ledgers
Two seperate Tax ledgers - one to account input service credit and another for output Service Tax for all the service categories.
2. Input and Output Tax Head based on Tax Ledgers
Three separate Input Credit ledger - to account Input Credit of Service Tax, Education Cess and Secondary and Higher Education Cess
Three separate Output ledgers - to account Output Tax of Service Tax, Education Cess and Secondary and Higher Education Cess .
Note: You can create the Input Tax ledger under the group Duties & Taxes or Current Assets. The Ledgers created under Current assets should be used only to account service input credit.
'Tax Ledger' has been shared with
