D-Day Events is an event management company. They render event management services to their clients. They receive advertising service from AtoZ company. Let's see how service tax details can be defined in a scenario, where a company renders a service and receives a service.
To define service tax details for D-Day Events
1. Go to Gateway of Tally > F11: Features > Statutory & Compliance.
2. Set Enable service tax? to Yes.
3. Enable the option Set/alter service tax details?.
4. Enable Define service category and tax details as masters? to set service tax details in the ledger level.
5. Press Enter to save details.
Note: Once the service tax details is defined in the ledger level, the company level service tax rate (if defined) will be over-ridden while recording a transaction.
Create a purchase ledger as shown below. Click the image below to view the step-by-step procedure of creating a purchase ledger:
Create a service tax ledger as shown below:
Create a Swachh Bharat cess ledger as shown below:
Note: If you have created a Swachh Bharat cess ledger with the Type of duty/tax as Others, you can change the same to tax type Swachh Bharat cess.
On selecting the service tax and Swachh Bharat cess ledger in the transaction, the service tax and Swachh Bharat cess rate is calculated as shown below. Click the image below to view the step-by-step procedure for recording a service tax purchase transaction:
'Defining Service Tax Rates at the Ledger Level' has been shared with
