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Configure Reverse Charge for Service Tax

You can configure reverse charge for service tax details in service category and party masters.

To configure reverse charge of service tax

1.Press F11 (Features) > set Enable Service Tax to Yes.
- If you do not see this option:
  . Set Show more configurations to Yes.
  . Set Show all configurations to Yes.
Set the option Define service category and tax details as masters? to Yes.
Set the option Is reverse charge applicable? to Yes as shown below:

Service Tax Details in TallyPrime

To create a classification

1.Gateway of Tally > Create > type or select Service Category > and press Enter.
Alternatively, press Alt+G (Go To) > Create Master > Service Category > and press Enter.
2.Enter the name of the service category and the service tax rate.
3.Press F12 (Configure) and set the option Allow Reversal Charges? to Yes as shown below:

Allow Reversal Charges in Category Master Configuration in TallyPrime

Enter the Reverse Charge Details in the Service Category Alteration as shown below:

Service Category Alteration in TallyPrime

To assign classification to the service ledger

1.Gateway of Tally > Create > type or select Ledger > and press Enter.
Alternatively, press Alt+G (Go To) > Create Master > Ledger > and press Enter.
2.Set the option Is Service Tax Applicable? to Applicable.
3.Set the option Set/Alter Service Tax Details? to Yes. The Service Category Alteration screen appears as shown below:

Service Tax Details in TallyPrime

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