With effect from June 01, 2016, Krishi Kalyan Cess of 0.5% will be levied on all taxable services.
Tally.ERP 9 release 4.93 is enhanced to support this new compliance requirement. This article has a detailed explanation on how to account for Krishi Kalyan Cess while recording transactions that attract service tax.
To create service ledger
1. Go to Gateway of Tally > Accounts Info. > Ledgers > Create.
2. Enter the Name.
3. Select Sales Accounts as the group name in the field Under.
4. Enable the option Is Service Tax Applicable?.
5. Select the required service category in the field Default Service Category.
The Ledger Creation screen appears as shown below:
6. Press Enter to save.
To create service tax ledger
1. Go to Gateway of Tally > Accounts Info. > Ledgers > Create.
2. Enter the Name.
3. Select Duties & Taxes as the group name in the field Under.
4. Select Service Tax as the Type of Duty/Tax.
5. Select Service Tax as the Tax Head.
The Ledger Creation screen appears as shown below:
6. Press Enter to save.
To create a Swachh Bharat cess ledger
1. Go to Gateway of Tally > Accounts Info. > Ledgers > Create.
2. Enter the Name.
3. Select Duties & Taxes as the group name in the field Under.
4. Select Others as the Type of Duty/Tax.
5. Enable the option Use for Swachh Bharat Cess?.
The Ledger Creation screen appears as shown below:
6. Press Enter to save.
To create a Krishi Kalyan Cess ledger
1. Go to Gateway of Tally > Accounts Info. > Ledgers > Create.
2. Enter the Name.
3. Select Duties & Taxes as the group name in the field Under.
4. Select Others as the Type of Duty/Tax.
5. Enable the option Use for Krishi Kalyan Cess?.
The Ledger Creation screen appears as shown below:
6. Press Enter to save.
To record a sales transaction with Krishi Kalyan Cess
1. Go to Gateway of Tally > Accounting Vouchers > F8: Sales > Accounting Invoice.
2. Select the party in the Party's A/c Name field.
3. Select the service ledger (grouped under sales/income) under Particulars, to open the Service Tax Details screen.
4. Select the Type of Ref and the Type of Service.
5. Enter the Service Amount.
The Service Tax Details screen appears as shown below:
6. Press Enter to return to invoice screen.
7. Select the service tax ledger and press Enter.
8. Select the Swachh Bharat cess ledger and press Enter.
9. Select the Krishi Kalyan Cess ledger and press Enter.
10. Enter Narration, if required.
The sales invoice appears as shown below:
11. Press Enter to save.
● Click P: Print in the alteration mode of the invoice to print the invoice.
The invoice appears as shown below:
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