Query: How to configure for Swachh Bharat Cess in Release 4.9x Solution: Swachh Bharat Cess is a cess which is applicable on all Taxable Services from 15th Nov, 2015. Following are the steps to configure for Swachh Bharat Cess in Release 4.9x- 1.Have a separate ledger for Service Tax Do not use a common tax ledger (configured with Tax head as Any). If you are using a common tax ledger, create a new ledger for Service Tax with configuration as follows- Group: - Duties and Taxes/Current liability/Current Asset Type of duty/tax:- Service Tax Tax head: - Service Tax Note: Do not change the Tax Head of Service Tax ledger from ANY to Service Tax, if the ledger has been used in the period before June 2015, as Education Cess and Secondary Higher Education Cess were applicable on all Taxable Services before June 2015. Hence, it is suggested to create a new ledger with Tax Head as Service Tax. 2.Create ledger for Swachh Bharat Cess Create a ledger for Swachh Bharat Cess with configuration as follows- Group:- Duties and Taxes / Current Assets Type of duty/tax: - Others Percentage of calculation: - 0.5% Method of calculation: - On Total Sales 3.Pass transaction and specify the value of Swachh Bharat Cess manually You can now pass transactions using the Service Tax and Swachh Bharat Cess ledgers. Specify the value of Swachh Bharat Cess manually as shown below- Swachh Bharat Cess will be shown separately in the invoice printout.In case the Sale amount is different from the Taxable Service amount, i.e. if there is any Abatement or Allowable Expense or Reverse Charge,manually calculate Swachh Bharat Cess and key in the value in the voucher. Note: 1. In Sales/Purchase invoice configuration (From the invoice, click I: Item invoice and click F12: Configure), ensure that 'Calculate tax on current sub total' is set as No becauseif this option is set as Yes, the value of Swachh Bharat Cess shown will be wrong. 2. In Release 4.9x, you will not be able to generate the Challan or file Returns as per the updated format for capturing Swachh Bharat Cess details.
thanks sir, before this post i was used the following trick in release 4.93 1. create ledger of swatch bharat cess-- group duties and taxation---sub tax service tax--- additional duty 2.rate of tax is 3.57% and round off upword rs. 1.00 3. finish. why 3.57% because we want 0.5% on 100 but as our tax is calculated on current ub total we have to calculate 3.57% on 14 ( 100 * 0.5% = 14 * 3.57% ) thanks.
