Creating Sales Vouchers Exempted from Service Tax

Step 1: Create the Customer Ledger

Go to Gateway of Tally > Accounts Info > Ledgers > Create

1. In the Name field enter the name of the company to which the services are provided goods. e.g. EOCO Systems

2. In Under field select Sundry Debtors from the List of Groups

3. Set Maintain balances bill-by-bill to Yes.

4. Enter details in the Default Credit Period if applicable

5. Set Is Service Tax Applicable to Yes to view the  Exemption Details screen to display

6. In the Exemption Details screen

7. In Type of Classification select Exempt. The option Exempt will be selected when the tax is not payable

7. Enter the Mailing details.

8. Press Enter to save.

Step 2: Create a Sales Voucher

Go to Gateway of Tally > Accounting Vouchers > Sales (F8)

1. Enter the transaction date in the Date field

2. Enter the reference number in the Ref field

3. Select Party’s A/c Name from the List of Ledger Accounts e.g. EOCO Systems

4. Select the Service Ledger from the List of Ledger Accounts e.g. Sales-Accounting Services

5. Enter the transaction amount of RM 5000  in the Amount field

6. In the Bill-wise Details screen

7. In Type of Ref field select New Ref as the Method of Adjustment

8. In Name field enter the bill name. (If Reference Number entered in the invoice will be displayed, which can be changed).

9. In Service Tax Ledger field select Not Applicable

10. Transaction amount will be defaulted in the Amount field

7. Accept the Bill-wise Details screen

8. Enter the transaction details in the Narration field

9. Press Enter to accept.