Tally ledger creation for st @ 14%

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ARTHI (Querist)

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)

30 May 2015 Can anybody look into this, please?

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

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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