Tally ledger creation for st @ 14%

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ARTHI (Querist)
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21 May 2015 Dear Friends / Experts,

Please guide me on the following, IF POSSIBLE:

Query on Tally Ledger Creation for ST @ 14%.

Can someone please explain me steps to create Ledger for ST @ 14% (Auto Calculation, while creating Bills in Tally Version 9?)?

Note in Service Tax Details Screen: Service Tax @ 14% should appear automatic and Cess, SHEC should not appear or it may have 0%.

Your reply, please..............

Thanks in advance for possible replies from all concerned.

ARTHI

ARTHI (Querist)
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30 May 2015 Can anybody look into this, please?

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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26 July 2025 To create a **Service Tax (ST) ledger @ 14%** in Tally ERP 9 so that it calculates automatically while making bills, follow these steps:

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### Step-by-step Ledger Creation for Service Tax @ 14% in Tally ERP 9:

1. **Enable Service Tax in Tally**

* Go to **Gateway of Tally > F11: Features > Statutory & Taxation**
* Enable **Service Tax**
* Set **Set/alter Service Tax Details** and enter your service tax registration number.
* Accept and save.

2. **Create Service Tax Ledger**

* Go to **Gateway of Tally > Accounts Info > Ledgers > Create**
* Name: **Service Tax @ 14%** (or any preferred name)
* Under: **Duties & Taxes**
* Type of duty/tax: Select **Service Tax**
* Method of calculation: Select **On Value**
* Specify the percentage: **14%**
* Set **Cess and SHEC** to 0% (or leave blank if you don’t want them to appear)
* Accept and save.

3. **Create your Sales Ledger**

* Create the sales ledger for your services under **Sales Accounts**.
* Set **Is Service Tax Applicable?** to **Yes** in sales ledger.
* In the sales ledger, specify the **Nature of Service** to correctly classify your services (for proper tax treatment).

4. **Check while making Invoice**

* While entering the sales invoice, after entering the service details, Tally will **automatically calculate 14% Service Tax** based on the ledger you created.
* Cess and SHEC will not be applied if you set them to 0% in the Service Tax ledger.

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### Important Points:

* Make sure your **Service Tax settings are enabled in F11**.
* While creating the **Service Tax ledger**, percentage should be entered correctly as 14%.
* The **cess and SHEC** fields in the ledger can be left at 0% or blank if not applicable.
* If you want **only Service Tax at 14%** to appear on invoices, ensure that Cess and SHEC are not assigned any rates.

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If you want, I can give you the exact screen-wise walkthrough or help with your Tally data file! Would you like that?

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