Specifying Rate as Inclusive of Service Tax

You can record sale of service rendered by specifying the amount that is inclusive of tax.

Sale of Service Inclusive of Tax

For example, on 18-06-2016, AtoZ Company rendered advertising services to Sathya Enterprises  worth ₹ 3,00,000, inclusive of service tax. Let us see how to record a sales transaction for this scenario.

To record the transaction

1.    Go to Gateway of Tally > Accounting Vouchers > F8: Sales.

2.    Click F12: Configure. The Voucher Configuration screen appears.

3.    Enter the reference number in the field Ref.

4.    Select the party ledger in the field Party's A/c Name and enter the party details.

5.    Select the sales ledger under Particulars. The Inclusive of Service Tax screen appears as shown below:

6.    Enter the amount in the field Enter Amount.

7.    Select Duties & Taxes ledger. The service tax, swachh bhara cess and krishi kalyan cess values are calculated automatically using the details defined at the ledger level.

8.    Click A: Tax Analysis to view the tax breakup, and press Esc to return to sales invoice.

The sales invoice appears as shown below:

9.    Press Enter to save.