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: