Service Tax
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Service Tax

Benefit From Exemption Entitlements

If you have a business with a turnover less than Rupees eight lakhs, then the business is categorised as small service provider. Tally.ERP 9 let you record service tax on purchase transactions generated by you, but without the need to pay service tax.

With many businesses falling under the service tax umbrella, there is a need for a comprehensive solution to manage day-to-day operations and for effortless tax compliance. The existing Service Tax module has been re-modelled keeping in mind the ever-growing requirements of businesses. Enhanced service tax module of Tally.ERP 9 delivers complete support for tax on services.

Enhanced Service Tax capabilities of Tally.ERP 9 include:

Benefit From Service Tax Billing For Professionals


In practice, professionals issue receipts for services rendered. Tally.ERP 9 allows you to record receipts for services provided, calculate the service tax and print the service bills from the receipt voucher. Let us consider an example: Mr. A –an Architect—provides consultancy service to customers. For the services provided, Mr. A receives payments from his customers and issues receipts on the collection of money and generates the receipt- cum-challan.

Better Manage Service Tax On Advances

As per law, tax on advance receipt of service charges is to be paid if the invoice is not raised within 14 days from the date of receipt of advance.

Tally.ERP 9 provides you with the facility to record the advances, calculate service tax on advances received/made and to adjust advances while generating sales/purchase invoices.

Let us consider an example: You are a consultant and have received advance payment from a client. You may require 8 months to deliver the complete service and therefore a sales invoice will be generated at the end of the project. In this case now you have to generate receipt for advance payment received and need to pay service tax on this payment collected. Later, on completion of service generate Service invoice by considering/adjusting the advances received.

GTA Service Tax Without Gaps

When a Goods Transport Agency (GTA) is hired by you for transporting raw material or finished goods or any other purpose relevant to business, liability to pay the service tax on the transport service received by you will be on you.

Tally.ERP 9 facilitates the recording of purchase of services from (GTA) and calculating the service tax payable.

Enhance Control Over Tax On Import Of Service

As per Service tax rules, Import of services means any services provided from outside India and received in India. Tax on such services is known as tax on Import of Services and service receiver is liable to pay service tax on Import of Services.

Tally.ERP 9 lets you record import of services and calculate the service tax.

Get Full Advantage Of Value Exclusions As Pure Agent

A pure agent is a service provider who is a liaison between another service provider and a service buyer. An expense incurred by the pure agent is exempt from service tax.

For example, a service provider ABC has an established customer XYZ who has expressed interest in buying a service which is not provided by ABC. Because of the existing relationship between them, ABC agrees to find another service provider PQR who is ready to sell the service required by XYZ. In this process ABC does not have any service liability; his role is pure agent. Costs or expenses incurred by the pure agent should be deducted from the total service charges.

Tally.ERP 9 provides the facility to exclude the costs and expenses incurred by a service provider acting as a pure agent from total service charges to get taxable amount.

Maximise Consideration Of Money Equivalents

Any consideration (something in return) received towards services provided or paid towards services received in a form other than money is called Money equivalent. Consider two service providers buying and selling services between them. Instead of paying each other for services they mutually agree to settle the liability through a form other than money. Since service tax needs to be paid on receipt of payment, in the above situation service providers will pay tax on money equivalent of service exchanged.

Tally.ERP 9 allows the user to record money equivalent of consideration transaction.

Utilise Cenvat / Input Service Tax Credits

Tally.ERP 9 facilitates utilisation of Cenvat / input service tax credit received by you on purchase of an item/ services towards Excise or service tax liability.

Close The Loop On Tax Calculation In Order Cycle

Tally.ERP 9 allows the recording of sales order and purchase order for the services and the calculation of service tax amount in the order cycle.

Manage Advances To Government

Now adjust service tax advances made to the Government against actual service tax liability, in Tally.ERP 9.

Save BIG With Fault-Free Payments

Situation 1: In the day-to-day transactions your accountant has made a mistake in calculating the service tax, uncovered at the time of audit. Now your tax liability is more than what you have paid. Situation 2: You have forgotten or missed the due date for tax payment, now you need to pay the tax. Situation 3: the department has decided to change the service tax percentage to be levied on you. Now you need to adjust your books in-order to comply.

For such arrears: in case of delayed payment, the department will charge interest on the amount due. If the department officials find that a business has intentionally defaulted or delayed tax payment then a penalty can also be charged. Penalty value will be decided by the department official as a percentage of defaulted value or equivalent or more than the value of defaulted amount, depending on the seriousness of the offence.

Tally.ERP 9 provides a facility to account arrears, interest, penalty and other payments which will appear as ST3 report and service tax computation report.

Benefit From Exemption Entitlements

If you have a business with a turnover less than Rupees eight lakhs, then the business is categorised as small service provider. Tally.ERP 9 let you record service tax on purchase transactions generated by you, but without the need to pay service tax.

Open Accounts On Any Day Of The Year

Start the opening balance of Service Input credit and service tax into books of accounts afresh anytime during the Financial Year...at your convenience.

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