Service Tax in Tally.ERP 9

When we buy or sell of services, we have to record service tax. Because it is tax matter, we have to take it more seriously. Government's tax department can check any time if your annual service tax is huge like telecom companies' service tax. So, we have to record purchase and sale of services with service tax properly in the books through tally software.


In this written and video tutorial, you will learn the simple steps of recording of service tax in Tally.ERP 9.

1st : Change the Statutory Features of Tally.ERP 9 

First of all, you have to go to the gateway of tally.erp 9. In right side below, you see feature button. In this, you have to enable service tax yes. For more detail , you have to right service tax registeration no.. For example it may be CASSDG7584DST001. Now, you can record service tax in tally.erp 9

2nd : Create the Ledger Accounts

Now, follow second step. In this step, you have to create service provider account under sundry creditors and service receiver account under sundry debtor account  in

Account Inf >> Ledger Creation >> Create

You also create Purchase Account (Name of Service). Keep it under purchase account. You have to write inventory affect as no.

You also create Sale Account (Name of Sold service). Keep it under sales account. You have to write inventory affect as no.

Except above accounts, you have also to create service tax account under duties and taxes.


3rd Pass the Voucher Entries in Journal Vouchers

Now, start pass the voucher entries in journal vouchers.

For buying  services on credit

Purchase of Service Account Debit

Service Tax Account Debit

Service Provider Account Credit

For selling service on credit

Service Receiver Account Debit

Service Tax Account Credit

Sales of Service Account Credit


Video Tutorial




Related : Service Tax Journal Entries