Type search words and press enter
Seamless e-invoicing is now at your fingertips. Check out our self-help videos.

Advance Payment (Service Tax)

As per Rule 6 sub-rule (1A), all the taxable persons can pay service tax in advance. Service tax paid in advance is allowed to be self-adjusted towards service tax liable to be paid for the subsequent period.

For example , on 30-06-2016, D-Day Events paid advance service tax of ₹ 9,100, Swachh Bharat cess of ₹ 325 and Krishi Kalyan cess of ₹ 325 to the government towards event management services.

1. Go to Gateway of Tally > Accounting Vouchers > F5: Payment .

2. Click S : Stat Payment .

3. Select Service Tax as the Tax Type .

4. Enter the dates in the field Period from and To .

5. Select Advance in the Type of Payment .

6. Press Enter to save.

7. Select bank ledger in the field Account .

8. Select the current liability ledger for service tax advance under Particulars .

9. Enter the Amount as 9,100.

10. Press Enter to save.

11. Select the current liability ledger for Swachh Bharat cess advance under Particulars .

12. Enter the Amount as 325.

13. Select the current liability ledger for Krishi Kalyan cess advance under Particulars .

14. Enter the Amount as 325.

15. Enter the Bank Allocation details, as applicable.

16. Enter Narration , if required.

The payment invoice appears as shown below:

17. Press Enter to save.