How to Calculate Service Tax on total transaction amount including TDS ?

For the accurate calculation of Service Tax and TDS follow the given steps

1. Book the Expenses and Service Tax through Purchase Voucher as shown

2. Deduct TDS in a separate Journal Voucher using of Alt + S: TDS Deduction 

3. Make the Payment to party

4. Check the Service-Tax Input credit Form -report displays the realised value & total credit as shown below

Step1. Book the Expenses and Service Tax through Purchase Voucher as shown

Select the Expenses ledger and allocate the entire amount to the applicable TDS Nature of Payment

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Select the Input Service Tax Ledger and in the Service Tax Bill-wise details screen select the default bill details

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In the Expense Allocation screen select the applicable TDS Nature of Payment

Note: TDS Nature of Payment for the Input Service Tax Ledger as Even on the service Tax amount TDS needs to deducted.

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In the TDS Details screen select the details as shown

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In the Bill-wise Details screen enter the bill references as shown

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Save the purchase voucher

Adjust the Bill Number - 1 and save the voucher

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Step 2. Deduct TDS in a separate Journal Voucher using of Alt + S: TDS Deduction option as shown

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Step 3. Make the Payment to party

Select Mrs. Rao and in the Bill-wise Details screen select the bill reference as shown

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Save the Payment Voucher

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Step 4. Check the Service-Tax Input credit Form -report displays the realised value & total credit as shown below

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