Creating A Company and Enabling VAT in Tally - ERP 9 (Delhi)

Download as pps, pdf, or txt
Download as pps, pdf, or txt
You are on page 1of 107

Creating a Company and

Enabling VAT in Tally.ERP 9


(DELHI)
Regular VAT

1
Create Company as Illustrate
Data Storage Location
Below

1. Explain business analysis and its relation


to financial statement analysis
2. Identify and discuss different types of
If “ Use Security
Control” :- No
The Tally.Net

business analysis Features

Not Available

3. Describe the component analysis


4. Learn the sources of financial information
5. Accounting system features
6. Company reporting strategy

2
yes

Go to Gateway of Tally >


F11: Features > F3:
Statutory & Taxation.

3
4
yes

5
Creating Master Required for
VAT

6
 Creating a Purchase/Sales Ledger
 Creating an Input/ Output VAT Ledger
 Creating a Supplier/Customer Ledger
 Creating a CST on Purchase/ Sales Ledger
 Creating a Stock Item
 Creating a VAT Adjustment Class for
Journal

7
Go to Gateway of Tally > Accounts Info. > Ledgers > Create

Select Appropriate VAT/TAX


Class, Try to Create Purchase
Ledger as VAT/TAX Class
wise

The field - Use for Assessable Value Calculation will be displayed for ledgers grouped under
Direct Expenses/Incomes, Indirect Expense/Incomes, Purchase Accounts and Sales
Accounts. In case of ledgers which add to the cost of purchase or sale value, this field needs to
be enabled to select the Duty/Tax Type as VAT with the required Method of Apportion. The
option Excise & VAT will not be displayed even on enabling Excise module for ledgers
grouped under Purchase and Sales Accounts. Care should be taken to disable the option Used
for Assessable Value Calculation in case of regular Purchase and Sales ledgers for both VAT
and VAT & Excise enabled companies.

8
You May Select ‘Not Applicable’ Here,
You may choose VAT/ Tax Class at the
time of Voucher Entry

9
List of
VAT/TAX
Class Used In
DVAT

10
List of
VAT/TAX
Class Used In
DVAT

11
You Select Not Applicable
Here, You may choose VAT/
Tax Class at the time of
Voucher Entry

Previous Year
Closing Figure

12
This is for Overdue
Receivable/ Payable
Report

13
14
Press Ctrl + Enter

Press

15
Ensure that in F12: Configure the field Allow
  ADVANCED entries in Masters is set to Yes.

16
17
Same as Purchase Ledger

18
Same as Input VAT

19
20
Create Anything Anywhere in tally
(Here Units)>Alt+C
Create Anything Anywhere in tally
(Here Units)>Alt+C

Go to Gateway of Tally > Inventory Info. > Stock Items >


Create

21
22
23
24
25
26
27
28
29
Creating a VAT Adjustment Class for Journal

Enter the Name of


Class, for e.g., VAT
Class.

Go to Gateway of Tally > Accounts Info. > Voucher


Types > Alter > Journal

30
31
32
33
34
Recording of Transaction

35
 Purchase of Taxable Goods
 Purchase of Capital Goods
 Inter-State Purchase of Goods
 Consignment Branch Transfer Inwards
 Purchases Made against Form H
 Receipt of Debit Notes from Creditor
(Seller)
 Receipt of Credit Note from Creditor
(Seller)
 Issue Debit Note for Goods Purchased
Returned

36
Go to Gateway of Tally > Accounting Vouchers > F9: Purchases

Purchase of Taxable Goods


Item Invoice

Press

37
YES/NO

38
39
The field - Use for Assessable Value Calculation will be displayed for ledgers grouped under Direct
Expenses/Incomes, Indirect Expense/Incomes, Purchase Accounts and Sales Accounts. In case of ledgers
which add to the cost of purchase or sale value, this field needs to be enabled to select the Duty/Tax Type as
VAT with the required Method of Apportion. The option Excise & VAT will not be displayed even on
enabling Excise module for ledgers grouped under Purchase and Sales Accounts. Care should be taken to
disable the option Used for Assessable Value Calculation in case of regular Purchase and Sales ledgers for
both VAT and VAT & Excise enabled companies.

40
41
42
Purchase of Capital Goods

Press

43
Yes

44
45
46
Inter-State Purchase of Goods

47
Purchases Made against Form H

The Form H is issued by an exporter for purchase of goods. In order to issue


Form H, the purchase of goods must be for an export order or in pursuance of an
export order. The seller of goods will be eligible to get the export benefits on the
basis of Form H issued by the purchaser. So Form H has to be issued and the
same is selected in the purchase invoice in order to bifurcate the inter-state
purchases made, exclusively for exporting goods from local purchases

49
Gateway of Tally > F11>Accounting Feature

50
Creditor

Gateway of Tally > Accounting Vouchers > Ctrl+F8: Credit Note

51
Creditor

Gateway of Tally > Accounting Vouchers > Ctrl+F9: Debit Note

52
53
54
Sale of Taxable Goods

55
Sales – Exempted

56
Export Sale

57
Gateway of Tally> Display>List of accounts>Currencies> Alt+C

58
Sales Against Form E1/E2

Press F12

59
Yes

60
61
E-1, E-2 Transaction
 According to Section 6(2) of CST Act, the first inter-state sale is taxable
and subsequent sale during movement of goods by transfer of documents
of title to goods is exempt from tax, if the subsequent sale is made to a
registered dealer.

 Example: Assume National Traders from Karnataka despatches goods to


Yukta Traders of Tamil Nadu and raises an invoice on Prerana Traders in
Maharashtra. National Traders charges 2% CST and remits the same in
Karnataka. During movement of goods, Prerana Traders sells the goods to
Yukta Traders in Tamil Nadu. Yukta Traders takes possession of goods and
the 'movement of goods’ comes to an end.

 The sale from Prerana Traders to Yukta Traders is by way of transfer of


documents of title to goods. In the above case, National Traders will receive
declaration in ‘C’ Form from Prerana Traders and will issue declaration in
‘E1’ form to Prerana Traders. Subsequently, Prerana Traders will receive
declaration in ‘C’ Form from Yukta Traders and issue declaration in ‘E2’ form
which completes the cycle. It is important to note that, if this chain is broken
CST will be payable.

62
Consignment Branch Transfer Outward of Goods

63
Inter-State Sale of Goods

64
Sales against Form H – Deemed Exports

65
Credit Note for Sales Cancelled

66
Debit/Credit Note for Change in Nature of Sale

67
Credit Note for Change in Sales Consideration

68
Credit Note for Goods Sold Returned

69
Journal Entries

70
Gateway of Tally> accounting voucher> F7

71
72
73
Bad Debts Written–off
 A dealer may write-off the whole or partial
value of sales to a particular customer as
bad debt. The amount of bad debts must be
nullified and the purchase values needs to
be transferred to expense account. The
amount of tax included in such sale value
can be claimed as a deduction by the dealer.

74
Bad Debts Recovered
 The amount of output VAT included in the
instance of bad debts incurred is nullified
and the balance in the party account is
transferred to an expense ledger.
Sometimes, the dealer may recover the
amount written-off as bad debts from the
customer. Such bad debts recovered will be
considered as income and is chargeable to
output VAT.

75
Tax Payable on Goods Held on the Date of
Cancellation of Registration
 The input VAT paid on closing stock of goods
held cannot be claimed as tax credit when the
registration is cancelled. In such cases, these
goods have to be considered as chargeable to
output VAT and valued based on the fair market
value. The difference between the input tax credit
and the output VAT payable needs to be adjusted
using a journal voucher. Also, if the tax credit is
already availed, then the same will be chargeable
to output VAT.

76
Change in use of Goods for Purposes Other
than for which Credit Allowed
 In case, a dealer purchases goods for a
particular purpose for which tax credit is
allowed and subsequently uses the goods
for any other purpose on which tax credit is
not allowed, then the input tax claimed on
such purchase has to be reversed. The
reversal entry must be made in a journal.

77
Change in use of Goods for Purposes for
which Credit is Allowed
 A dealer may purchase goods on which tax
credit is not allowed and subsequently use it
for a purpose for which tax credit is
allowed. In such a case, the input VAT
needs to be accounted for by the dealer

78
Tax Credit Disallowed for Stock
Transferred out of Delhi
 The tax credit claimed at the time of
purchase by the dealer has to be reversed if
the goods are subsequently transferred out
of Delhi. This adjustment entry has to be
recorded in a journal voucher.

79
Tax Credit for Transitional Stock
held on 1st April
 The input VAT paid on goods purchased
from registered dealers can be claimed as
tax credit on transitional stock held by the
dealer, on producing the supporting
invoices, evidencing the payment of input
VAT. This adjustment entry has to be made
in a journal voucher.

80
Tax Credit for Purchase of Second
– hand Goods
 On purchase of second-hand goods, tax
credit can be claimed only if the supporting
document is an original tax invoice. The
entry for claiming tax credit on purchase of
second-hand goods must be recorded in a
journal.

81
Tax Credit on Goods Held on Date of Withdrawal
from Composition Scheme

 The dealer opting to withdraw from


composition scheme would be eligible to
claim tax credit on input tax paid under the
Regulation on the trading stock, raw
material and packaging material held on the
date from which withdrawal is sought. The
credit would be available on the basis of
original tax invoice showing the tax
component separately.

82
Tax Credit for Trading Stock and Raw
Materials Held at the Time of Registration
 A dealer may have purchased goods from a
registered dealer before falling under the
purview of VAT Act. Such input tax paid
can be claimed as a tax credit by the dealer
at the time of registration under the Act.
The tax credit can be claimed on trading
stock or raw materials only if, there is a
supporting tax invoice issued by a
registered dealer for the amount of input tax
paid on such goods.

83
Tax Credit Disallowed for Goods
Lost or Destroyed
 The input tax credit claimed on purchase of
goods has to be reversed if such goods are
lost or destroyed.

84
Balance Tax Credit on Capital
Goods
 The tax credit on purchase of capital goods
can be claimed in 3 equal installments. The
adjustment entry to avail the tax credit can
be accounted for in journal voucher using
voucher class.

85
Adjustment Towards Interest
Payable
 The amount of interest to be paid due to a
delay in payment or any departmental
adjustments on account of audits or orders
etc. has to be accounted for to adjust the
interest liability.

86
Adjustment towards CST Due
 The excess of input VAT credit available
after adjusting the output VAT liability can
be used to pay the amount of CST due.

87
VAT Adjustment – Difference
CST Payable
 On the basis of the Forms, a dealer may claim
exemption/reduction on CST payable. In case where the
dealer fails to submit the forms to the department within
the stipulated time, the difference between the actual CST
liability and the CST already collected has to be paid. For
entering this difference amount, a Journal Voucher using
Difference CST Payable as VAT Adjustment needs to be
passed. The tax amounts entered will capture the values in
respective columns of Forms based on the selection made
in Forms to Receive or Forms to Issue fields (these fields
will pop up on selecting the VAT Adjustment for journal
voucher with class).

88
VAT Adjustment – Interest
Payable on CST
 The dealer will be required to pay interest on account of
non-payment of CST liability within the prescribed time
limits. Such interest will be calculated, Form-wise, in VAT
Form 51 if the respective Forms are not submitted to
department within time limits. For entering this interest
amount, a Journal entry using Interest payable on CST as
VAT Adjustment needs to be made. The values will be
captured in respective Columns of Form based on the
selection of Forms made in Forms to Receive or Forms to
Issue fields (these fields will pop up when this VAT
Adjustment is selected for journal voucher with class).

89
VAT Adjustment against Tax
Payable
 At the end of every tax period it is advisable to set
off the output vat amount of output vat ledgers
with Input vat amount of input vat ledgers created.
 In case where the net output is in excess, the
balance amount of VAT due is transferred to Vat
Payable ledger. The excess of input VAT over
output VAT, if any, during a particular tax period
needs to be adjusted only to the extent of output
VAT liability and balance of ITC can remain in
the respective ledgers.

90
Payment of VAT Liability
 From Release 2.0 onwards, S: Stat
Payment option needs to be selected to
make all Statutory Payments including
VAT/CST. The Payment Details should
now be provided in the Provide Details sub
screen.

91
Reports

92
VAT Computation Report
Gateway of Tally > Display > Statutory Reports > VAT Reports > VAT Computation

Change Period from Alt


+ F2 Press F12

93
94
Drag it

95
96
Gateway of Tally > Display > Statutory Reports > VAT Reports
>VAT Commodity>Purchase

97
Gateway of Tally > Display > Statutory Reports > VAT Reports
>VAT Commodity>Sale

98
Gateway of Tally > Display > Statutory Reports > CST Reports>
Form Receivable>Group>Sundry Debtors

99
Reminder Letters for Form Collection Gateway of Tally > Display >
Statutory Reports > CST Reports > Form Receivable > Print> no>
Print reminder Letter> Yes

100
Gateway of Tally > Display > Statutory Reports > CST
Reports> Form Issuable>Group>Sundry Creditors

101
102
VAT Return (DVAT-16)
 Gateway of Tally > Display > Statutory
Reports > VAT Reports > VAT Forms >
VAT Return

103
Form 1- CST Return
 Gateway of Tally > Display > Statutory
Reports > CST Reports > CST Return
Forms > CST Return Form

104
Form VAT 4
 Gateway of Tally > Display > Statutory
Reports > CST Reports > CST Return
Forms > CST Annexures
 Every Registered Dealer is required to
maintain Form 4- Register of Inter-state
Sales to record the inter-state sales
transactions.

105
VAT Annexure: DVAT-30
 Gateway of Tally > Display > Statutory Reports > VAT
Reports > VAT Forms > VAT Annexures > DVAT-30
 Form DVAT 30 displays a list of all the purchases
made during a particular return period.
 The detail of purchases made using all the purchase
classifications is captured in Form DVAT 30. The
party-wise details of transactions made using VATable,
non-VATable, exempt and inter-state purchases are
displayed in the respective fields of Form DVAT 30.
Original tax invoice for taxable purchases and invoices
for purchases made without payment of tax has to be
preserved date-wise and in numerical order.

106
VAT Annexure: DVAT-31
 Gateway of Tally > Display > Statutory Reports > VAT
Reports > VAT Forms > VAT Annexures > DVAT-31
 Form DVAT 31 displays a list of all the sales made
during a particular return period.
 The detail of sales made using all the sales
classifications is captured in Form DVAT 31. The
party-wise details of transactions made using VATable,
non-VATable, exempt, zero-rated, tax free and inter-
state sales are displayed in the respective fields of Form
DVAT 31. Original tax invoice for taxable sales and
invoices for sales made without charging output tax has
to be preserved date-wise and in numerical order.

107
VAT Annexure: DVAT-51
 Gateway of Tally > Display > Statutory Reports > VAT
Reports > VAT Forms > VAT Annexures > DVAT-51
 The Form VAT 51 is a reconciliation return with
information relating to various forms that are used by
the trader during the course of interstate sales or
transfers. This provides information relating to the
Forms to be submitted to the department for the sales
on which lower rates of CST is charged or not charged.
 This form is to be submitted within three months from
the end of relevant quarter for which the information is
provided.

108

You might also like