Recording Krishi Kalyan Cess in Transaction

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.

Creating service ledger

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.

Creating a service tax ledger

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.

Creating the Swachh Bharat cess ledger

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.

C reating the Krishi Kalyan Cess ledger

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.

R ecording the transaction

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.

P rinting Krish Kalyan Cess details in the invoice

Click P : Print in the alteration mode of the invoice to print the invoice.

The invoice appears as shown below: