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Configure Reverse Charge for Service Tax

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

To configure reverse charge of service tax

• 1.Press F11 (Features) > set Enable Service Tax to Yes.
  • If you do not see this option:
    . Set Show more configurations to Yes.
    . Set Show all configurations to Yes.
• Set the option Define service category and tax details as masters? to Yes.
• Set the option Is reverse charge applicable? to Yes as shown below:

To create a classification

• 1.Gateway of Tally > Create > type or select Service Category > and press Enter.
  Alternatively, press Alt+G (Go To) > Create Master > Service Category > and press Enter.
• 2.Enter the name of the service category and the service tax rate.
• 3.Press F12 (Configure) and set the option Allow Reversal Charges? to Yes as shown below:

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

To assign classification to the service ledger

• 1.Gateway of Tally > Create > type or select Ledger > and press Enter.
  Alternatively, press Alt+G (Go To) > Create Master > Ledger > and press Enter.
• 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.