Implementation of Change in Service Tax in a Restaurant

The service tax rate has increased from 14% to 14.5% w.e.f 15.11.2015 due to Swachh Bharat Cess.

Here is how to implement it.

Process for restaurants:

• Step 1: Create a new tax master (please do not modify the existing tax)
  • Do not update taxes as it is effective from 15th November,2015
  • From main menu go to Tax Master, press M>A>T
  • Tax name > Service Tax @ 5.8%
  • Included in rate as per the requirement
  • Press Ctrl + N to create a new ledger (Service Tax @5.8%) (do not select any existing ledger)
  • Press Alt + S to save
  • Press Alt + L to select the ledger created
  • Rate: 5.8% | Tax type: Service Tax
  • Calculation method as per his requirement
  • Press Alt + S to save
• Step 2: Make the necessary changes in the menu
• Go to Menu management, from main menu press M>F>M
• Press Alt+L to select the menu
• Go to Product field then tax field, press Alt+L to select the tax
• Then press Alt+S to save the menu

In case of other businesses, if service tax is applicable

• Step 1: Create tax as per the steps mentioned above
• Step 2: Change the tax in product master
  • Then go to Product management, from main menu press M>I>P
  • Go to Tax at sale field, press Alt+L to select the new tax
  • Press Alt+S to save the product master
  • Alternatively, you can also make a bulk update to implement the tax changes in the products
  • Press Alt+D in Product management
  • Then go to Tax at sale field & Press Alt+L to select the tax
  • Press Alt+S to save