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Service tax invoice or voucher entry

Gateway of Tally > Accounting Voucher > F8 Sales
Select Account invoice button or press shortcut key Alt + I to enter transactions in
Account invoice mode. Change the date
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Press enter and save the screen.

 In the next line Select service tax ,amount automatically appear

 Swatch Bharath cess in the next line and amount will be calculated automatically.
 Krishi Kalyan Cess in the next line and amount calculated as per rate 0.5%

Service tax report

As the Swatch Bharat cess and Krishi Kalyan Cess is the latest taxes, You will not
get comprehensive report and return in Tally.ERP9 Release 4.93. For getting
complete report you have use Tally Latest Version Release 5.3.8. You have fill
GAR 7 and return manually.

You can see the Computation report below

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TDS Tax deducted at source

TDS or Tax Deducted at Source is a means of indirect tax collection by Indian

authorities according to the Income Tax Act, 1961. TDS is managed by the Central
Board of Direct taxes. In this guide lets learn how to set-up TDS in Tally ERP9.

When and how to deduct TDS?

Income and expenditure such as salary, lotteries, interests from banks, payment of
commissions, rent payment, payments to freelancers, etc. fall under the ambit of
TDS. When making payments under these segments, a percentage of the overall
payment is withheld by the source that is making the payments.

Deductor

The source, which can be a person or an organization, is known as the Deductor.

Deductee

The person whose payment is getting deducted is called the Deductee. For
instance, John smith LLP paid Audit fee to Vikas Gupta,
Deductor: is John Smith LLP.
Deductee: Vikas Gupta.
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TDS Reports: -
There are two main reports in TDS Report section

1. Form 26 Q : As per the Income Tax Act, 1961, every corporate and
government entity responsible for deduction of tax at source should
furnish TDS returns containing details of deductee(s) and challan details
relating to deposit of tax with the Income Tax Department. Form 26Q is
the Quarterly return of TDS in respect of all payments other than salaries.
This is applicable for Resident and the due date for Government entities
is July 31st, October 31st, January 31st, and May 15th; for non-
government entities the due dates for filing returns are July 15th, October
15th, January 15th, and May 15th.

Form26 Q can be accessed from

Gateway of Tally > Display > Reports > Statutory

Reports > TDS Reports > Form 26Q.
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2. Form 27 Q: Form 27Q is a Quarterly return for deduction of tax in

respect of payments made to non-residents other than salary.

Form 27 Q can be accessed

Gateway of Tally > Display > Reports > Statutory

Reports > TDS Reports > Form 27Q.

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How to Enable Payroll in Tally

In Tally, the payroll activation is a one-time configuration setup. To

enable payroll in Tally, use the following step by step procedure.

Use the following path to enable payroll in Tally

Step 1: Gateway of Tally → F11: Features → F1: Accounting Features

Step 2: Choose the option Account Info under Gateway of Tally.

Create Employee Groups

In this section, we will discuss how to create, modify, and display

employee groups in Tally. In Tally, using the single creation method and
multiple creation methods, an employee group can be created. Use the
step by step process to create employee groups in Tally.

Use the following path to create employee groups.

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Step 1: Gateway of TallyPayroll InfoEmployee groupsSingle

GroupCreate

Step 2: Click on payroll info under Gateway of Tally screen.

Step 3: Click on the Employee Group option under payroll info.

Step 5: Enter the following details under the employee group creation
screen.