If the service tax details are not defined in the ledger level, the details are captured from the group level.
Straight Scenes Designs is an architectural firm. They render architects services and interior decorations to their clients. They receive advertising services to promote their firm and also event management services. Let's see how service tax details can be defined in a scenario, where a company renders more than one service and receives more than one service.
To define service tax details for Straight Scenes Designs
1. Go to Gateway of Tally > F11: Features > Statutory & Taxation.
2. Set Enable service tax? to Yes.
3. Enable the option Set/alter service tax details?. The Service Tax Details screen appears.
● Set the option Define service category and tax details as masters? to Yes.
● Press Ctrl+A to save.
The service tax details for a group can be defined during:
● Service Category Creation, or
For each of the services rendered and received, a service category can be created. The service category with the service tax details should be associated with a group.
Create a service category as shown below. Click the image below to view the step-by-step procedure of creating a service category:
Create a group under Sales Accounts as shown below. Click the image below to view the step-by-step procedure of creating a ledger group with service tax details:
Create a ledger under the service category Architect Services as shown below. Once the ledger is associated with a category, the service tax details defined in that category is inherited.
On selecting the service tax, Swachh Bharat cess, and Krishi Kalyan cess ledgers in the transaction, the service tax, Swachh Bharat cess, and Krishi Kalyan cess values are calculated as shown in the screen below. Click the image below to view the step-by-step procedure for recording a service tax sales transaction:
Defining Service Tax Rate at Company Level
Defining Service Tax Rate at Ledger Level
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