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Swachh Bharat cess in Release 5.x

Discussion in 'Tally Developer' started by admin, Dec 3, 2015.

  1. admin

    admin Administrator Staff Member


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    Swachh Bharat Cess is levied and collected on all taxable services at the rate of 0.5%, with effect from November 15, 2015.

    The service tax rate including the Swachh Bharat Cess is 14.5%.



    Points to note:

    ·Swachh Bharat cess is levied, charged, collected, and paid to the government independent of service tax.

    ·Swachh Bharat cess is charged separately on the invoice, accounted separately in the books of account, and is paid under

    a separate accounting code.

    ·Swachh Bharat cess cannot be levied on services which are exempted from service tax.

    ·Input tax credit cannot be availed on Swachh Bharat cess.





    To know more about Swachh Bharat Cess,refer KB articles mentioned below:-

    a) Defining Swachh Bharat Cess in purchase and sales ledgers

    Configure the following in the sales/purchase ledger for service tax,

    • Is service tax applicable? : Applicable
    • Set/alter service tax details? : Yes

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    The Service Category Creation (Secondary) screen appears.


    2. Select the Service Category.

    3. Enter the rate details as follows:

    • Service Tax: 14%
    • Swachh Bharat cess: 0.5%


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    4. Press Enter.

    5. Save the ledger.


    Note: Swachh Bharat Cess can also be defined at the company (F11>F3) or service category alteration (Accounts info> Statutory info> Service categories) level. While specifying the rate of Swachh Bharat Cess, ensure that Date of applicability is selected as 15.11.2015.

    b) Modifying the Swachh Bharat cess ledger created with Tax Head created as Any

    The Type of duty/taxhas to be changed to Swachh Bharat Cess as shown in the image below:


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    This ledger can now be used in transactions to account for Swachh Bharat cess.


    Note: If a voucher has been passed earlier with Swachh Bharat Cess amount mentioned manually, note that if the voucher is altered, the Swachh Bharat Cess amount will be recalculated as per the current configuration.

    c) Using Swachh Bharat Cess ledger created with Type of duty/tax as Any

    In the alteration mode of the Swachh Bharat cessledger, change the Type of duty/tax to Swachh Bharat as shown below:


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    d) Availing input credit for Swachh Bharat Cess
    No. Input credit can't be claimed for Swachh Bharat Cess on purchases. The Swachh Bharat Cess amount paid on purchases should be treated as an expense.

    Note: It is suggested to maintain 2 different ledgers for Swachh Bharat Cess paid on purchase and Swachh Bharat Cess collected on sale. This will help to easily identify the Swachh Bharat Cess payable.


    e) Recording a payment transaction for Swachh Bharat cess


    To record the payment transaction

    1. Go to Gateway of Tally > Accounting Vouchers > F5: Payment.
    2. Click on S: Stat Payment.
    3. Select Service Tax as the Tax Type.
    4. Enter the Period From and To.
    5. Select Regular in the Type of Payment.
    6. Press Enter to save.
    7. Select the bank ledger in the field Account.
    8. Select the service tax ledger under Particulars.
    9. Enter the service tax amount.
    10. Select the Swachh Bharat Cess ledger.
    11. Enter the Swachh Bharat cess.
    12. Press Enter to save.
    13. Enter the Bank Allocation details, as applicable.
    14. Enter Narration, if required.
    The completed payment transaction appears as shown below:


    [​IMG]

    f) Accounting for Swachh Bharat Cess in sale of Pure Agent services

    1. Go to Gateway of Tally > Accounting Vouchers > F8: Sales > Accounting Invoice.

    2. Select the party ledger in the field Party's A/c Name.

    3. Select the sales ledger under Particulars.

    4. Enter the Allowable Expenses.

    The Service Tax Details screen appears as shown below:



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    5. Enter the Amount.

    6. Select the service tax ledger.

    7. Press Enter.

    8. Select the Swachh Bharat Cess ledger. The service tax and SBC rate will be calculated automatically on the difference amount.

    9. Press Enter to save.

    10. Click A: Tax Analysis. Click F1: Detailed to view the tax breakup of the two service category.

    11. Enter Narration, if required.

    The sales invoice appears as shown below:



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    12. Press Enter to accept.

    g) Accounting for Swachh Bharat cess when recording a reverse charge transaction

    Configuring Reverse Charge


    To record a reverse charge transaction, define the following options in F11: Features > F3: Statutory & Compliance


    • Set Define Service Category and tax details as masters? toYes.
    • Set Is Reverse Charge Applicable? to Yes.

    Purchase Ledger for Reverse Charge


    Ensure that the purchase ledger is configured as below:


    1. Set Is service tax applicable? to Yes.
    2. Enable Set/alter service tax details?
    3. Select the required Service Category which should have the following options defined:

    • Service Tax Details, as required.
    • Is reverse charge applicable? set to Yes.
    • Reverse Charge percentage defined.

    The completed Service Category Creation screen appears as shown below:



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    To record a reverse charge transaction


    1. Go to Gateway of Tally > Accounting Vouchers > F9: Purchase > Accounting Invoice.
    2. Enter the Supplier Invoice No.
    3. Enter the Date for invoice.
    4. Select the party required.
    5. Select the purchase ledger created for reverse charge under Particulars.
    6. Enter the Amount.
    7. Select the service tax ledger.
    8. Press Enter.
    9. Select the Swachh Bharat ledger. The service tax and Swachh Bharat Cess rate will get calculated automatically.


    10. Click A: Tax Analysis. Click F1: Detailed to view the tax breakup of the two service category.


    11. Press Enter to save.


    12. Enter Narration, if required.


    The purchase invoice appears as shown below:



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    13. Press Enter to save.


    h) Accounting for Swachh Bharat cess in sale of services with abatement

    ou can define the abatement percentage on the sales or purchase amount at the service category, ledger or group level.


    Defining abatement


    To define abatement of sales amount in the service category level


    1. Go to Gateway of Tally > Accounts Info. > Statutory Info. > Service Categories >Create.
    2. Click F12: Configure and enable the option Enable abatement details?
    3. Press Enter to save.

    Enter the Name of the service category.


    „h Enter the rate of Service tax, and Education cess, if required.


    „h Enter the rate of Swachh Bharat cess.


    „h Enter the Abatement rate. The completed Service Category Creation screen appears as shown below:



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    Recording the sales with abatement


    1. Go to Gateway of Tally > Accounting Vouchers > F8: Sales.
    2. Enter the Ref. number.
    3. Select party ledger in the field Party's A/c Name.
    4. Select the sales ledger with the abatement percentage defined.
    5. Enter the Amount.
    6. Select the service tax ledger.
    7. Press Enter.
    8. Select Swachh Bharat cess ledger.
    9. Press Enter.
    10. Press Enter to save.

    The completed Accounting Voucher Creation screen appears as shown below:



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    11. Press Enter to save.


    i) Accounting Swachh Bharat cess in a sale of service inclusive of tax

    To account for Swachh Bharat cess in a sale inclusive of service taxd

    1. Go to Gateway of Tally > Accounting Vouchers > F8: Sales.

    2. Press Ctrl + V to record the transaction in invoice mode.

    3. Click F12: Configure.

    4. Enable the option Allow entry of amount inclusive of tax for service tax ledger?.

    5. Press Ctrl + A to accept changes.

    6. Enter the reference number in the field Ref.

    7. Select the party ledger in the field Party's A/c Name and enter party details.

    8. Select the sales ledger under Particulars. The Inclusive of Service Tax screen appears as shown below:


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    9. Enter amount in the field Amount.

    10. Select the service tax ledger.

    11. Press Enter.

    12. Select the Swachh Bharat cess ledger.

    13. Press Enter.

    14. Click A: Tax Analysis to view the tax breakup.

    15. Enter Narration, if required.

    The sales invoice appears as shown below:


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    13. Press Enter to save.


    j) Swachh Bharat cess support in Form ST3

    Currently, Swachh Bharat cess can be defined in the masters and recorded in the transactions. Support to capture Swachh Bharat details in the Form ST3 will be provided once the template for the same is finalised by the department.

    Note: Swachh Bharat Cess details will not appear in Triangulation report currently. This is because the format of presenting this information in returns has not been prescribed by the Department. Once the details are given, we shall incorporate it in Tally.ERP 9.


    k) FAQ,s on Swachh Bharat cess
     

    Attached Files:



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