Service Received from Non-taxable Territory (Service Tax)
When a service is received from a non-taxable territory like Jammu and Kashmir, the service receiver will be liable to pay the service tax applicable on the service.
For example, on 26-05-2015, D-Day Events received courier services from GetThere Couriers which is located in Jammu and Kashmir worth ₹ 50,000. D-Day Events will be liable to pay the service tax applicable on this transaction.
- 1. Gateway of Tally > Vouchers > press F9 (Purchase).
-
Alternatively, press Alt+G (Go To) > Create Voucher > press F9 (Purchase).
- Press Ctrl+H (Change Mode) to select the required voucher mode (Accounting Invoice, in this case)
- 2.Select GetThere Couriers in the field Party’s A/c Name. Ensure that the Jammu & Kashmir is selected in the field State.
- 3.Select the purchase ledger under Particulars.
- 4.Enter 50,000 in the field Amount.
- 5.Press Enter to save.
- 6.Enter Narration, if required. The Purchase invoice appears as shown below:
- 7.Press Enter to accept.
Since the entire service tax amount incurred will be the recipient’s liability, D-Day Events will pay the department. They can either raise the liability using a journal voucher or can directly make a payment to the department.
