Defining Service Tax Rates at the Company Level

Scenario

AtoZ Company is an advertising agency. They render advertising services to their clients. Let's see how service tax details can be defined in a scenario, where a company only renders a service but does not receive any.

Defining Service Tax Details

To Define Service Tax Details for AtoZ Company

1. Go to Gateway of Tally > F11: Features > Statutory and Taxation.

2. Enable the option Set/alter service tax details.

3. Enable Set/alter service tax details.

4. Enter the Name.

5. Set the rate for Service tax.

6. Set the rate for Education cess.

7. Set the rate for Secondary education cess.

8. Press Enter.

9. Press Enter to save the details.

Creating Service Tax Ledger

Create the service tax ledger as shown below:

Creating Sales Ledger

Create a sales ledger as shown below:

Using Defined Tax Rate in Transaction

On selecting the service tax ledger in the transaction, the service tax rate is calculated as shown in the screen below. Click the image below to go to the step-by-step procedure for recording a service tax sales transaction.