Advance Payment (Service Tax)

Advance Payment (Service Tax)

As per Rule 6 sub-rule (1A), all the taxable persons can pay service tax in advance. Service tax paid in advance is allowed to be self-adjusted towards service tax liable to be paid for the subsequent period.

For example, on 30-06-2016, D-Day Events paid advance service tax of ₹ 9,100, Swachh Bharat cess of ₹ 325 and Krishi Kalyan cess of ₹ 325 to the government towards event management services.

  1. Gateway of Tally > Vouchers > press F5 (Payment).

Alternatively, press Alt+G (Go To) > Create Voucher > press F5 (Payment).

  1. Press Ctrl+F (Autofill).
  2. Select Stat Payment
  3. Select Service Tax as the Tax Type.
  4. Enter the dates in the field Period from and To.
  5. Select Advance in the Type of Payment.
  6. Press Enter to save.
  7. Select bank ledger in the field Account.
  8. Select the current liability ledger for service tax advance under Particulars.
  9. Enter the Amount as 9,100.
  10. Press Enter to save.
  11. Select the current liability ledger for Swachh Bharat cess advance under Particulars.
  12. Enter the Amount as 325.
  13. Select the current liability ledger for Krishi Kalyan cess advance under Particulars.
  14. Enter the Amount as 325.
  15. Enter the Bank Allocation details, as applicable.
  16. Enter Narration, if required.

The payment invoice appears as shown below:

      17.  Press Enter to save.

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