When working with services in TallyPrime that are subject to GST, it is important to understand how the software determines which SAC (Service Accounting Code) and GST rate to apply.
TallyPrime follows a specific hierarchy to decide this, ensuring accuracy and compliance with GST regulations.
1. Service Ledger in TallyPrime
The highest priority is given to the service ledger itself.
If the SAC code and GST rate are defined directly in the ledger, TallyPrime will apply these details automatically whenever the ledger is used in any transaction.
Example:
You create a ledger named “Consulting Services” and assign:
- SAC: 998313 (Information technology consulting services)
- GST Rate: 18%
When you use this ledger in a sales or purchase voucher, Tally will apply the SAC and GST rate from the ledger without looking elsewhere.
2. Accounting Group (If not set in Ledger) in TallyPrime
If the SAC or GST rate is not defined in the ledger, TallyPrime will look for these details in the accounting group under which the ledger is classified, such as “Sales Accounts” or “Indirect Expenses”.
Example:
You create a ledger “HR Advisory” under the group “Sales Accounts” but do not assign any SAC or GST rate to the ledger itself.
However, in the “Sales Accounts” group, you have specified:
- SAC: 998311 (Human resources consulting services)
- GST Rate: 18%
In this case, Tally will use the SAC and GST rate defined in the group.
3. GST Classification in TallyPrime
TallyPrime also allows you to define GST classifications that include specific SAC codes and tax rates.
If a ledger is linked to a GST classification, the SAC and tax rate from the classification will be used.
Example:
You create a GST classification named “Professional Services” and assign:
- SAC: 998399
- GST Rate: 18%
You then link this classification to a ledger named “Design Services”.
Whenever this ledger is used, Tally will apply the SAC and GST rate from the GST classification.
4. Manual Entry During Voucher Entry in TallyPrime
If none of the above options are configured—that is, if the SAC and GST rate are not defined in the ledger, its group, or a classification—Tally will prompt you to enter them manually during the voucher entry process.
5. Best Practices for SAC and Tax Rate Application for Services in TallyPrime
To avoid errors and ensure consistency in your GST reporting, it is recommended to:
- Define SAC and GST rate directly in service ledgers.
- Use GST classifications for sets of ledgers that share the same SAC and rate.
- Review and audit your masters periodically to ensure all required fields are filled.
6. Example Summary Table for SAC and Tax Rate Application for Services in TallyPrime
| Ledger Name | SAC Applied | GST Rate | Applied From |
|---|---|---|---|
| Consulting Services | 998313 | 18% | Ledger |
| HR Advisory | 998311 | 18% | Group |
| Design Services | 998399 | 18% | GST Classification |
| Marketing Charges | (Not set) | (Prompt) | Manual during voucher |
By understanding and configuring this hierarchy properly, you can ensure that your invoices are tax-compliant and accurately reflect your GST liability.
Leave a Reply