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https://help.tallysolutions.com/docs/te9rel50/Tax_India/Service_tax/Purchase_of_Service.htm

Purchase of Service

In this topic

Single Service Received

Purchase of Service Inclusive of Tax

Single Service Received

D-Day Events is an event management company. They render event management services to their clients. They receive advertising service from AtoZ company.

On 06-04-2015, D-Day Events received advertising services worth ₹ 2,00,000 from AtoZ Company on which service tax is charged at @ 12.36%. The invoice number of the bill issued by AtoZ is AZ/04/025 dated 03-04-2015.

To record the transaction

  1. Go to Gateway of Tally > Accounting Vouchers > F9: Purchase > Accounting Invoice

  2. Enter AZ/04/025 in the Supplier Invoice No. field.

  3. Enter 03-04-2015 in the Date field.

  4. Select AtoZ Company in the Party's A/c Name field.

  5. Select the purchase ledger under Particulars.

  6. Enter 200000 in the Amount field.

  7. Select duties and taxes ledger. The service tax rate will get calculated automatically using the details defined at the ledger level.

  8. Press Enter.

  9. Enter Narration, if required.

The Purchase invoice appears as shown below:

  1. Press Enter to accept.

Purchase of Service Inclusive of Tax

On 22-4-2015, Straight Scenes Designs received advertising services from CreativeIn Ad Firm worth ₹ 3,00,000, inclusive of service tax. Let us see how to record a purchase transaction for this scenario.

To record the transaction

  1. Go to Gateway of Tally > Accounting Vouchers > F9: Purchase > Accounting Invoice

  2. Click F12: Configure.

  3. Enable the option Allow Inclusive Tax during entry for Service Tax.

  4. Press Ctrl + A to accept.

  5. Enter the Supplier Invoice No.

  6. Enter the Date (supplier invoice date).

  7. Select CreativeIn Ad Firm in the Party's A/c Name field.

  8. Select the purchase ledger under Particulars.

  9. Enter 300000 in the Enter Amount field. The amount excluding tax will be filled in the Amount field.

The Inclusive of Service Tax screen appears as shown below:

  1. Select duties and taxes ledger. The service tax rate will get calculated automatically using the details defined at the ledger level.

  2. Click A: Tax Analysis to view the tax breakup.

  3. Enter Narration, if required.

The Purchase invoice appears as shown below:

  1. Press Enter to accept.

 

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