When a service is received from a non-taxable territory like Jammu and Kashmir, the service receiver will be liable to pay the service tax applicable on the service.
For example , on 26-05-2015, D-Day Events received courier services from GetThere Couriers which is located in Jammu and Kashmir worth ₹ 50,000. D-Day Events will be liable to pay the service tax applicable on this transaction.
1. Go to Gateway of Tally > Accounting Vouchers > F9: Purchase > Accounting Invoice .
2. Select GetThere Couriers in the field Party's A/c Name . Ensure that the Jammu & Kashmir is selected in the field State .
3. Select the purchase ledger under Particulars .
4. Enter 50,000 in the field Amount .
5. Press Enter to save.
6. Enter Narration , if required. The Purchase invoice appears as shown below:
7. Press Enter to accept.
Since the entire service tax amount incurred will be the recipient's liability, D-Day Events will pay the department. They can either raise the liability using a journal voucher or can directly make a payment to the department.
'Service Received from Non-taxable Territory (Service Tax)' has been shared with