Practice Exercise 4

Exercise on Service Tax

Create company by your full name. Your company conducts the computer classes. Set the financial year as 2010-2011. Record the following transactions in the company.

1. Create Following Ledgers under appropriate groups

Ledger Computer Training Fees Telephone Expenses Service Tax on Computer Training Service Tax on Telephone Expenses Cash Mr. Hemant (Student) Mr. Sagar (Student) BSNL (Telephone Service Provider) Capital A/c

Op. Bal. ------------------------------------Rs.50,000/---------------------------Rs.50,000/-

2. Transactions a. Mr. Hemant (Student) paid Computer training fees Rs.10,000/- (S. Tax 12.36% extra) b. Mr. Sagar (Student) joined Computer Class worth Rs. 5000/- fees, but paid Rs. 2000/- for admission. (Service Tax 12.36% extra) c. Paid Telephone bill to BSNL of Rs.1,000/-. (Service Tax extra 12.36%)

d. Paid Service Tax payable to Government.

Reports :

1) Show the GAR-7 Challan for Service Tax paid to the Govt. 2) Show Service Tax Return Report.