Configuring Reverse Charge of Service Tax

You can configure reverse charge details in service category and party masters.

To configure reverse charge of service tax

1.     Go to Gateway of Tally > F11: Statutory Features.

2.     Enable the option Set/alter service tax details?

o      Set the option Define service category and tax details as masters? to Yes.

o      Set the option Is reverse charge applicable? to Yes as shown below:

To create a classification

1.     Go to Gateway of Tally > Accounts Info. > Statutory Info. > Service Categories > Create or Alter.

2.     Enter the name of the service category and the service tax rate.

3.     Click F12: Configure and set the option Allow Reversal Charges? to Yes as shown below:

o      Enter the Reverse Charge Details in the Service Category Alteration as shown below:

To assign classification to the service ledger

1.     Go to Gateway of Tally > Accounts Info. > Ledgers > Create or Alter.

2.     Set the option Is Service Tax Applicable? to Applicable.

3.     Set the option Set/Alter Service Tax Details? to Yes. The Service Category Alteration screen appears as shown below:

4.     Press Ctrl+A to accept.