Service tax and Swachh Bharat cess can be calculated on the sales or purchase amount after abatement.
You can define the abatement percentage on the sales or purchase amount at the service category, ledger or group level.
To define abatement of sales amount in the service category level
1. Go to Gateway of Tally > Accounts Info. > Statutory Info. > Service Categories > Create.
2. Click F12: Configure and enable the option Enable abatement details?.
3. Enter a Name of the service category.
4. Enter the rate of Service tax.
5. Enter the rate of Education cess, if required.
6. Enter the rate of Secondary education cess, if required.
7. Enter the rate of Swachh Bharat cess.
8. Enter the Abatement rate. The completed Service Category Creation screen appears as shown below:
To record a transaction with service tax abatement
1. Go to Gateway of Tally > Accounting Vouchers > F8: Sales.
2. Enter Ref. number.
3. Select party ledger in the field Party's A/c Name.
4. Select sales or purchase ledger with the abatement percentage defined.
5. Enter 10000 as the Amount.
6. Select service tax ledger and enter the amount.
7. Select Swachh Bharat cess ledger, and enter the amount.
8. Press Enter to save.
The completed Accounting Voucher Creation screen appears as shown below:
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