Excise Report

To view the Dealer Excise Report, go to Display from Gateway of Tally then go to statutory reports and then to Dealer Excise reports.
(Gateway of Tally -> Display -> statutory reports -> Dealer Excise reports)

There you can view two type of reports like Excise Stock Register and Form 2.

Form 2 is the return to be submitted by the dealer of excise duty every quarter.
Excise Stock Register shows the daily receipt and issue of excisable goods.

Excise invoice Printing

When the sales invoice has been made, you will require printout of the invoice from Tally. In order to print, press Alt + P at sales invoice screen. Then you will get the printing screen, you can find preview of excise invoice as per Rule 11 of the Central Excise Rule, 2002. Set the print configuration as desired. To select the excise duty break up and purchase details in Sales Invoice, you have to go to configure button(F12) and set the option "Print trader Supplier Info" to 'Yes'. The details of supplier, customer and manufacture are shown in the Sales invoice. The purchase and sales details of excise as well as the duty details are shown here.

Excise Details Entry in Invoice

Different type of invoice, like purchase, sales, Debit note and Credit note, can be created. First you have to select the Purchase voucher in Invoice mode. Then select the appropriate party account from the list, the party details screen will appear, enter the details there. Then you have to select the appropriate nature of purchase from the list. After that select the name of the item and enter the details in the excise details screen and accept the invoice.

Creation of Excise Voucher

You can create a new purchase voucher under the Purchase voucher and set the option "Use for Dealer Excise" to 'Yes'.

Similarly Sales,Debit note and Credit Note Vouchers can also be created.

Excise Duty Rate Entry in Stock item

As Excise Duty is charged on manufacture of goods, you have to mention the rate of duty while creating the stock item on which Excise Duty is applicable.
Go to Stock item Creation screen i.e. Gateway of Tally -> Inventory Info ->Stock Item -> Create. Set the option Excise Details to 'Yes'. The following details have to be entered in the screen:

Tariff classification : Here enter Tariff classification of the stock item. The Excise Duty authorities provide this code number for the concerned excisable stock.

Type of Duty : Here select the Duty from the list provided.

Rate of Duty : Here enter the rate of Duty applicable for the stock item .

Method of Calculation : Here select the appropriate method of calculation.

Ledger Account set up for Excise Duty Part 2

Additional Duty Ledger Account

If additional Excise Duty is applicable you have to create a new ledger account named Additional Excise Duty under the group Excise Duty. At the option 'Method of Calculation' field that appears on mentioning percentage of calculation, select Additional Duty. As already explained, other options are to be entered while creating excise duty ledger account. This duty is calculated as a percentage or part of the excise duty.

Creation of Supplier's/Customer's Ledger

A supplier and customer ledger account has to be created for Excise Duty transactions. The Excise Details option at the Tax Information portion of the ledger creation /alteration screen is to be set as 'yes'. The sub-screen will appear. There you have to enter the following details:

Excise Regn. No. - Here you have to enter the Excise Registration number of the supplier/customer.

Range - Here you have to enter the range under which the supplier/customer's company is registered.

Division - Here you have to enter the Division under which the supplier/customer's company is registered.

Commissionerate - Here you have to enter the name of the Commissionerate.

Nature of Purchase - Here you have to select the appropriate nature of purchase from the list provided.

Ledger Account set up for Excise Duty Part 1

Excise Duty Group and Excise Duty Ledger creation for additional Excise Duty is discussed here under:

Excise Duty Group
A sub-group named Excise Duty is to be created from Accounts Info under Duties and Taxes.

Excise Duty Ledger
Excise Duty ledger has to created under the group Excise Duty. As the Excise Rate vary for different items, it is better to create different ledgers for different rates like, Excise Duty 5%, Excise Duty 10%, etc. During Ledger creation Set the option "Inventory Values are affected" to 'No' as it is only required for sales and purchase entries. Write the rate in percentage in the field 'Percentage of Calculation'. Select "Tax based on Item Rate" from Type of Duty list in the 'Method of Calculation Field'.

Activation Features of Excise Duty

Press F11 and then press F3 to get the Statutory and Taxation menu. Set the options "Enable Dealer-Excise" and "Set /Alter Dealer-Excise Details". You will be forwarded to Excise Details screen. Enter the following details there:

ECC/PAN Based Regn/Code No. : Enter the Excise Control Code(ECC) or PAN number alloted to the organisation.

Commissionerate : Here enter the name of the commissionerate which controls the excise matters of the organisation.

Range Code : Here you have to enter the range code under which the organisation falls.

Range Name : Here you have to enter the range name under which the organisation falls.

Range Address : Enter the address of the range here.

Division Code : The Excise Division Code is to be entered here.

Division Name : The Excise Division Name is to be entered here.

Division Address : The Excise Division Address is to be entered here.

Excise Duty-Configuration Set Up

For Excise Duty configuration set up press F12 at Gateway of Tally. Set the options "Use Excise Format" and "Accept Supplementary Details" to 'Yes'.

Excise Duty

Another type of Indirect Tax is Excise Duty. It is charged on the manufacture of specified excisable goods at the time, when the goods leave the factory for sale. For Excise Duty, the taxable event is manufacture of goods. Under the Rules of Central Excise, organisations have to submit Excise Invoice under the Central Excise.

ST-3 Report

Return for Service Tax is supposed to be filed in Form ST-3 with the Service Tax Department . To print the return in Form ST3, select the option under Service Tax Reports menu. There you will get the Service Tax Return containing details with regard to the value of taxable service charged, value of taxable service realized, Service Tax paid and due. To get a print of this form, from Gateway of Tally, select Display then Statutory Report, select Service Tax Reports then ST3 Report.

Input Credit Form

If an organisation has the opportunity to adjust input credit of service tax paid on purchase of service, Tally will automatically generate input credit of service tax based on the transaction recorded by the user, a report called Input Credit Form. The report will display detailed information regarding the amount of input credit, that may be availed against payment of Service tax. The Input Credit Form should be printed after payment of the purcahse service bill. To get this report go to Display from Gateway of Tally, then select Statutory reports, from there select Service Tax Reports, there you can find the Input Credit Form.

TR-6 Challan for Submitting Service Tax

In order to submit Service Tax to the Government, TR-6 challan is required.To get this challan you have to go to Display menu from Gateway of Tally then go to statutory reports and then select Service Tax Reports, there you will get Tr-6 challan. You can get the print configuration screen of TR-6 challan. To print TR-6 challan set the options there as per your requirement and Press 'y' at the "Print?" screen.

Service Tax Report

Various reports are generated by Tally which can be viewed in a very easy manner. For viewing the reports from Gateway of Tally -> Display -> Statutory reports -> Service Tax reports.

Deposit of Service Tax

A payment voucher is to be created, for depositing the Service Tax. Then select the Service Tax account. Here the bill allocation screen will appear. Then Select the respective bills against which tax is payable by selecting Agst Ref in Type of Ref and by default the amount payable appears.

Input Service Tax

There might be organiations which are both service providers as well as service users. For example an IT training institute is a service provider, the institute also uses telecom services like the telephone.According to tax rule this charges can be adjusted with service tax payable by the institutes for the services rendered by it. Therefor the net amount is payable by the institute, the adjustment is known as availing Input Tax credit.

Input Credit Ratio
Press F11 and then press F3 to go to Statutory and Taxation Features, while providing company Service Tax details, at Credit Adjustment(%), enter the rate of Service Tax credit.
Then give the percentage, which is normally 20%, where input service is not exclusively used for the output service. If the input service is used solely for output service, then in that case the Credit Adjustment rate should be 100%. The percentage rate shows how much input credit is to be adjusted(i.e., 20% or 100%).

Service Purchase Ledger Adjustment
Then create Service Purchase Ledger account under the group Duties and Taxes.

Purchase Voucher Entry
Here Create a Purchase Voucher and enter the name of the party, i.e., from whom service is being purchased and the total bill amount(including service tax). In the bill allocation screen, details of the bill are to be entered by selecting the option New Ref. from type of Ref. In the purchase voucher, select service purchase ledger account and then Service Tax account and write the respective amounts from bill allocation details. The entry above can be done under voucher as well as Invoice mode, depending upon the circumstances.

Payment of Service Purchase Bill
For recording payment of service purchase bill, select the payment voucher and select the party account, from whom service has been purchased. At the Bill Allocation Screen, select the bill against which payment is to be made. Select Service Tax account and the amount paid against selected Service Bill.

Adjustment of Input Credit
To account for input credit, select payment voucher and select Service Tax Sales ledger account. From the Bill Allocation list, select the bills for which payment is to be made. Select the Service Tax purchase account and enter the bills for which adjustment of input credit needs to be availed. Finally, select bank account and enter net amount paid.

Challan for Balance Tax Deposit
After adjustment of input credit, TR 6 challan is required to be deposited with the Government while payment of Service Tax. Click Print button to get the TR6 challan print, at Payment voucher.

Abatement
We find a term Abatement, in the Service Tax details screen, which is shown as a deduction while calculating Service Tax. Sometimes it so happens that some materials are also supplied in addition to the service being provided. An abatement is allowed towards the value of the materials supplied as Service Tax is levied not on the value of materials but on the value of services. According to the service category, the abatement is shown as a percentage, fixed by the Government. The percentage is charged on the total amount of service income.

Receipt Voucher Entry for Service Bills

For receiving the service charge, a receipt voucher is required to be created. After the creation, go to the voucher and select the party ledger and then move on to the Sales Bill reference, against which the service charge is received. Enter the amount there and select Service Tax Ledger from the given list. The receipt voucher is ready to be given to the parties.

Sales Voucher Entry when Service tax is Applicable

The tax details is computed automatically if during creation of service income/expense ledger, the option 'Inventory values are affected' is set to 'yes'. To make sales voucher entry, in case service tax details is already computed, enter details in voucher mode. If not computed then enter the Sales Voucher Invoice mode.

Sales Voucher Entry in Voucher mode

First enter the party account, write the amount in the bill allocation screen and select the service tax ledger. Party Account is entered with amount and bill details, in debit column. Enter the service income account and the service tax details in the credit side through the Service Tax Ledger.

Sales Voucher Entry in Invoice mode

In case the Tax computation is not done, sales voucher entry is made in invoice mode. Party Account is to be selected first and then in sales ledger field select the service income account. Select the service account and enter the total amount in the table area. Select Tax Ledger and enter tax rate and cess rate. Service tax is posted against bill reference number.

Service Tax Computation

Select service tax ledger account, from there you can go to the screen for service tax details. The total computation , consisting of Abatement, Cess , Service Tax is shown here.

Creation of Service Expenses Ledger Account

Create this ledger account for the expenses, which are incurred for the purpose of service income.
These expenses are deducted to calculate the net value of Service Tax payable in the Service Tax details screen.

Service Tax Ledger Creation

Then you also have to create Service Tax Ledger for recording Service Tax related transactions. The Service Ledger is to be created under the group Duties and Taxes. In the ledger creation /alteration screen, the following information are to entered :

Type of Duty/Tax : Enter Service Tax from the list given.

Category name : Enter the service category of the company from the list provided by the software.

Creation of Service Income/Expense Ledger Account

After the Service Tax Registration Particulars you have to create Service Income/Expense Ledger Account. Service Income Ledger is to be created under sales account group or under direct income group. Enter the following details while ledger creation :

Is Service Tax Applicable : Set 'yes' for service incomes, if taxable under Service tax.

Inventory values are affected : Set 'yes' for this option if you want service tax to be computed automatically.

Creation of Party Ledger for Service Tax Part 2

After entering the Service Tax Exemption Details the Service Tax Registration particulars are to be provided.

Party Service Tax Registration Particulars

Here the following informattion are to entered :

Service Tax Number : Service Tax registration number of the party is to provided here.

Service tax Registration Date : The Service Tax Registration date of the party is to be provided here.

Creation of Party Ledger for Service Tax Part 1

To record collection and payment of Service Tax, certain ledgers are to be created with certain configuration changes with respect to Service Tax.
First create a Party ledger as usual, just set the option "is Service Tax Applicable" to 'yes'.

Service Tax Exemption Details

Here you have to enter the details of exemption for parties, where service tax is applicable but exempted. Enter the details there:

Is Exempted : Enter 'yes' if the party is exempted from the tax payment by any Government Notification, if not then enter 'no'.

Notification Details : In case the "Is exempted" is set to 'yes', the Notification Details appear. Here you have to enter the details provided in the Notification.

Service Category Profile

New service categories are added to the Service Tax list by the Government on a regular basis. You can view the profile of different Service Categories of service from time to time and also update profile with the help of Tally. In order to view the categories you have to go to Display from Gateway of Tally then go to Statutory Info and then Service Categories. A list of Service Categories will be provided. Select the category for which you want to view detailed profile, then the service category screen will display the category code, accounting code and date from which Service Tax is applicable, Tax rate, Cross rate and abatement.

Company Service Tax Particulars Entry Part 3

Focal Bank Details

Focal banks are those who are nominated by the Service Tax Department to accept the Tax paid by the Service Tax Payers. In the Focal Bank Details box, enter the following details :

Focal Bank Code - Here enter the code of the bank.

Focal bank Name - Here enter the name of the focal bank.

Focal Bank Address - Here enter the focal bank address.

After entering the details press 'Enter'. It will bring you back to the Company Operation Alteration(Statutory and Taxation) screen. Save the changes .

Company Service Tax Particulars Entry Part 2

Division / Range / Commissionerate

On the right hand side of the screen, information regarding the Service Tax Authorities are to be entered.


Division Code - Here you have to enter the code of the Service Tax division under which your organisation falls.

Division Name - Here you have to enter name of the service tax division.

Range Code - Here enter the code of the range under which the organisation falls.

Range Name - Here enter the name of the range under which the organisation falls.

Commissionerate Code - Here enter the code of the service tax commissionerate under which the organisation falls.

Commissionerate Name - Here you have to enter name of the service tax commissionerate.

Company Service Tax Particulars Entry Part 1

After you enable the options, it will take you to another screen named "Company Service Tax Details", where you have to enter the following information :

Company Service Tax Details
In this part the following details are to be entered:

Service Tax registration No. - Here you have to enter the registration number allotted to the company by the Service Tax Authorities.

Date of Registration - Enter the date on which the company was registered.

Assessee Code - Here you have to enter the code provided by the Service Tax authorities.

Type of Organisation - Select the appropriate type from the given list.

Major Service Category Name - Select from the given list of service categories, the name of the service on which the organisation deals. If the particular service is not available then select the option 'Not Applicable'

Credit Adjustments(%) - Here if the Input Service is directly related to Output Service then enter the credit adjustment % as 100.if the Input Service is not entirely related to Output Service then enter the credit adjustment % as 20.

Activation Features of Service Tax

In order to activate service tax features Press F11 then Press F3. Then set the options "Enable Service Tax" and "Set/Alter Service Tax Details" to 'yes'.

Service Tax

It is a type of indirect tax, which is charged on the seller of service though it is collected from the buyer of such service indirectly. The tax collected by the seller from the buyer of such service is required to be deposited to the Government. Service Tax is charged on almost all services, like, banking, travel agency, cable operator, etc.

Report fpr FBT

To view the FBT report go to Display from Gateway of Tally, then go to statutory reports, from there go to FBT reports. There you can view FBT computation( Gateway of Tally -> Display -> Statutory reports -> FBT reports). The report can also be viewed with section code and payment details. You can activate this option if the code and payment deatails cannot be viewed. FBT category ledger can also be viewed from here.

Printing FBT Challan

To print the FBT challan we have to press the Print button on the FBT challan page. Then the print configuration set up will appear. There set 'yes' to the option "Print as FBT challan".

Creating a Payment Voucher for FBT

To make payment of the FBT, you have to select the payment voucher at the Accounting Voucher Creation screen and select the FBT expense ledger.

Payment Voucher with FBT helper button
Enter the FBT ledger and set 'yes' t FBT details and then fill up FBT payment details. Payment voucher can be created using the FBT helper button. Then FBT Filter screen will appear and you have to fill up the details.

Creating FBT Journal with Class

You can also create a journal voucher with class. After selecting Journal Voucher for entry select the class i.e. Fringe Benefit Recovery and debit the party account and credit the expense account.

Creating FBT Journal without Class

To record a transaction involving FBT, we have to create a journal for FBT , when there is no class and have to debit the respective category of expense and credit party account.

Voucher Type Creation

For FBT transaction, the Journal voucher type has to altered. If you don't want to alter the existing voucher then you can create a new voucher, the voucher type should be Journal. In the Voucher type Creation/Alteration screen, type the class name for example Fringe Benefit Recovery and set the option "Use Class for FBT recovery" to 'yes'.

Ledger Creation for FBT

Three ledger are to be created in case of FBT. They are as follows :

• Tax Ledger : Create FBT ledger under the group Duties and Taxes. Select FBT at the field 'Type of Duty/Tax'.
• Party Ledger : Create party ledger under Sundry Creditors/Debtors.
• Expenses Ledger : Create an expense ledger under indirect expenses. Set 'yes' at the option "Is FBT Applicable", list of FBT categories will appear. Select the appropriate option from there.

(Creation of ledger => Gateway of Tally -> Masters -> Accounts info -> Ledger -> Create.)

Configuration Set Up for FBT in Tally

For configuration set up press F12 and select General. There select 'India/SAARC' at the option - "Use Accounting terminology of ".
Then set up the FBT features by pressing F11 and then press F3 i.e., Statutory and Taxation and set 'yes' to the options "Enable Fringe Benefit Tax" and "Set/Alter FBT Details".
There it will ask you for Company FBT Assesse Details. You have to provide the following details there :

• PAN/Income-Tax no. - Enter the Permanent Account Number(PAN) of the company/organisation alloted by the Income Tax Department.
• Assesse Type - Enter the type of assesse to which the organisation belongs from the list provided.
• Is surcharge Applicable - Tally automatically sets the option to 'yes'. Choose the proper option as per the situation.
• Assessee Category - Select the appropriate assessee category.
  

Fringe Benefit Tax(FBT)

Another type of direct tax is Fringe Benefit Tax. This tax is applicable on perquisites, which the employer provides to the employees in addition to cash salary and wages paid during the year. It is paid in addition to Income Tax and is paid at a specified rate. The tax is levied on the employer and is calculated on the net amount of expenses. The expenses that fall under this tax are expenses for entertainment, cars, club, etc.
It is very easy to operate FBT features in Tally, which facilitates automatic computation of Fringe Benefit Tax based on the voucher entry made by the user.

TCS Outstanding Reports

First go to TCS Outstanding menu(Gateway of TAlly -> Display -> Statement of Accounts -> TCS Outstanding), select the option Tax Payable to view the details of pending TCS, if any. This report provides a list of TCS ledgers accounts, columns for pending amount, overdue by days, etc. In order to view TCS Ledger outstanding, you have to select the ledger at TCS Outstandings menu and view the report containing Date, Ref No., Pending Amount, Due Date,etc.

e-TCS

Corporate and Government collectors of TCS have to file TCS return using electronic media, in a proper format.

In the e-TCS report, select restricted (ASCII only) from the list of languages. Enter the output file Name with .txt extension. Enter all the other informations to finally export the TCS return.

Printing Form 27D

Form 27D Reconciliation report can be viewed from the party ledger screen by pressing Form 27D Reconciliation button(F5). It can also be printed by pressing Alt + P.

TCS Reports

In order to view the reports select Display from Gateway of Tally, go to Statutory Reports and select TCS Reports. Three different reports can be viewed through the TCS Reports.

Challan Reconciliation for TCS

After printing the deposit challan, the details of the printed challan are entered through the Challan Reconcilliation button(F5). Detailed entry made are Bank challan Number, Challan Date, Bank Branch Code, Cheque number. Accept and save the reconciliation details.

Printing TCS Challan

In order to get TCS challan, click on print button after saving the payment voucher, the voucher printing dialogue box is activated. Then fill up general printing specifications and select 'yes' for Print as challan option.

Payment Voucher Creation of TCS

You can do it by using the TCS helper button, click on the button, TCS filter screen will appear, the details are to be filled up and then the payment voucher is to be created
Or else you have to debit TCS ledger and credit Bank Account for payment of TCS in payment voucher.

Sales Voucher for TCS

For TCS purpose, you have to go to sales voucher screen, in Invoice mode. Give the normal information there like party name, sales ledger, item name, etc. TCS computation screen displays details of TCS. You can change the rate by changing the configuration i.e. by setting 'yes' at the option 'Allow Alteration of TCS Rate' in the configuration screen.

Sales Ledger Creation for TCS

In order to create Sales Ledger go to Ledger Creation screen and fill it up, set 'yes' in the option TCS applicable.

Party Ledger Account for TCS

Go to Ledger Creation(Gateway of Tally -> Accounts Info. -> Ledger -> Create). At ledger creation or alteration screen of the party from whom TCS is collected. The following information has to be entered :

Is TCS applicable : Set this 'yes' for applicability of TCS.
TCS details screen will appear, enter the following there:
Buyer/Lessee: Select appropriate type from the list given.
Is Lower/No Collection Applicable: Set this as 'yes' if there is any exemption, orelse set it to 'no'.
Section Number : This is set to 206C by default.
TCS Lower Rate(%): Set it as per rate applicable.

Creation of TCS Ledger Account

First go to Ledger Creation screen(Gateway of Tally -> Accounts Info -> Ledger -> Create) and enter the following details:

Name : Enter the name of the ledger account to be opened.For example TCS on Timber Ledger.

Under : Ledger should be created under Duties and Taxes.

Type of Duty/Tax : Select TCS from the list given.

Nature of Good/Contracts/Licence/Lease : Select the nature from the list provided.You can view the details of the TCS rates from Gateway of tally -> Display -> Statutory Info -> TCS Nature of Goods.

Inventory values are affected : Set this as 'No'.

Configuration Set up for TCS

In order to set up configuration for TCS press F11 and then press F3. Set the option "Enable Tax Collected at Source(TCS)" and "Set /Alter TCS Details" as 'yes'. The company deductor/collector details sub screen will appear. Enter the following information there:

• Tax Assessment Number(TAN) : Enter the 10 digit TAN of the company, allotted by the Income Tax Department.
• Income Tax Circle/Ward : Enter the Tax Circle/Ward under which the company is being assessed.
• Deductor/Collector Type : Select the proper option from the given list.
  
• Name of the person responsible : Name of the official of the company who is responsible for collection and deposit of TCS, is to be given.
• Designation : The designation of the person whose named is mentioned in the previous field has to be entered.
  

Tax Collected at Source (TCS)

It is the tax collected by the seller from the purchaser for sale of certain goods/transactions mentioned under section 206C of the Income Tax Act, 1961. Some of these goods/activities are- mining and quarrying, tendu leaves, alchoholic liquor, timber, etc. TCS is to be submitted in a specified form within a week from the last day of the month, in which the tax was collected. Payment of tax to the government is to be made in specified branches of banks, authorized to collect tax.

Printing Form 16A for TDS

The deductor has to give a certificate to the deductee, as proof of deduction of TDS from the party. This certificate is given in different forms which varies with the type of payment.
In order to Print Form 16A, go to Gateway of tally -> Display -> Statutory Reports -> TDS Reports -> Print Form 16A. Select the TDS party ledger from the list, specify the details to get Form 16A printout.

TDS Reports

In order to view the TDS report go to Gateway of Tally -> Display -> Statement of Accounts -> TDS outstanding. The various reports can be viewed through the options available at TDS Outstanding menu.

Challan Reconciliation

You can use the details of the TDS challan and information previously saved, for future reconciliation purpose. After printing the deposit challan, the details are entered through the Challan Reconciliation button(F5). Bank challan Number, Challan Date, Bank Branch Code, Cheque Number are the detailed entry made. Accept and save it.

Printing TDS Deposit

TDS deposit challan is available after accepting print option.

TDS Challan Printing

To print the TDS challan, after saving the Payment voucher, click on the print button. Printing dialogue box is activated. Then fill up general printing specification and select 'yes' to print as TDS challan option.

TDS Deposit to Government

TDS so collected from payments is required to be deposited to the bank. Then challan is required to be created. It can be created using TDS Helper button in Payment voucher mode. It will lead you to TDS filters. Fill up the criteria. Then fill up the following :

TDS ledger : Give the particular expense account.

Deductee status : Give here the information that the company is a company or non-company.

After entering the details select the bank account and then accept payment voucher screen and save the entry.

After Deducting TDS, Payment to Party

After the journal entry, the payment entry to the party is to be made. Open the payment voucher(Gateway of Tally -> Accounting Vouchers -> F5) and select the party ledger, to get the screen for bill allocation. Bills which are yet to be paid are shown here after deduction of TDS. Select the bills to be paid.

Expense Booking

You can make payment after deduction of TDS and book the expenses at the same time, using Journal Voucher(F7).
Go to Journal Voucher screen(Gateway of Tally -> Accounting Vouchers -> F7), select the expense ledger in the particulars column and enter the amount in the Debit column. Then select the name of the party, from whom TDS is to be deducted. Press enter. You will be able to view Bill-wise Details.
In Bill-wise Details screen, select the New Ref under Method of Adj., enter other details, then select the TDS ledger from the list, the rate will be displayed automatically. Press 'Y' to accept the voucher.

Configuration Set up for TDS

In order to set up configuration for TDS in Vouchers so that TDS rates may be altered. Press F12 and then select Voucher entry and press enter. Set the option "Allow Alteration of TDS Rates" as 'yes'. This will help you in making changes in TDS rates.

Creating Ledger Account of Party/Deductee

Go to Ledger Creation(Gateway of Tally -> Accounts Info. -> Ledger -> Create). At ledger creation or alteration screen the party/deductee from whom TDS is to be deducted. The following information is to be provided :
Is TDS applicable : Set 'yes' this option.

Is Lower/No Deduction Applicable : If lower deduction is not applicable then set this option to 'no'.

Ignore surcharge : In certain cases, when the limit for TDS is reached, surcharge on TDS is levied. If this option is set as 'yes', surcharge will be deducted without any consideration to the exemption limit. If this option is set as 'no', surcharge will be calculated, only when the exemption limit is crossed.

Creation of TDS Ledger Accounts

First go to Ledger Creation screen(Gateway of Tally -> Accounts Info. -> Ledger -> Create), and enter the following details:

Name : Enter the name of the ledger account to be created i.e. TDS Account.

Under : Ledger should be created under Duties and Taxes.

Type of Duty/Tax : Select TDS from the list given.

Nature of Payment : Select the nature from the given list.

Ignore TDS exemption limit : For certain payments there is a limit, crossing which, TDS will be deducted. If you set the option as 'yes', TDS will be deducted only when the amount of payment exceeds that limit.

Company TDS Deductor Details

The following information has to be entered:

• Tax Assessment Number : Enter 10 digit TAN number of the company.

• Income Tax Circle/Ward(TDS) : Enter the Income Tax Circle/Ward number under which the Company is assessed.

• Deductor Type : Two options are there Government and other. Select the right option.

• Name of the person responsible : Here name of the company official responsible for deposit of TDS is to be given.

• Designation : Give the designation of the person whose name has been displayed in 'Name of the person responsible'.

Activating TDS in Tally

In order to activate TDS in Tally, press F11 from Gateway of Tally. Then press F3 or select Statutory & Taxation option. At the screen two options available - "Enable Tax Deducted at Source(TDS)" and "Set/Alter TDS Details". Set these options as 'yes'.

Tax Deduction at Source(TDS)

TDS is one of the method of collecting Income-Tax under certain circumstances from the assessee. If any specified type of income arises to any person, the Income-Tax Act requires the payer(deductor) of such income to deduct a stipulated percentage of such income at the time of making payment. Only the balance amount is paid to the receiver. The amount deducted as TDS has to be deposited into the Government Treasury, within a specified time.

The TDS is treated as Income Tax payment by the receiver at the time of assessment. A TDS certificate is to be given to the receiver.

Some of the incomes are - salary, interest, dividend, interest on securities, commission and brokerage ,etc

VAT Form and VAT Return

VAT Form
To view the periodical VAT return go to
Gateway of tally -> Display -> Statutory Report -> VAT reports -> VAT Forms. The form for VAT differs according to the state you have selected in the company creation screen.

VAT Return
An assessee falling under the purview of VAT is supposed to file return through Form No. 100. As Tally is VAT complaint it generates the Return based on the transactions entered into. For VAT return form go to
Gateway of tally -> Display -> Statutory Report -> VAT reports -> VAT Forms.

VAT Payable/Carried Forward

The report displays the VAT amount for each type of transactions together with total Output and Input Tax. It shows the VAT payable/Refundable amount, which is the difference between the Total Output Tax and Total Input Tax.

When Output Tax is greater than Input Tax, VAT Payable is Output Tax - Input Tax.
(Output Tax > Input Tax, VAT Payable= Output Tax - Input Tax)

When Output Tax is less than Input Tax, VAT Refundable is Input Tax - Output Tax. Balance Amount is carried forward to next period.
(Output Tax < Input Tax, VAT Refundable= Input Tax - Output Tax)

VAT Report

To see VAT Reports go to Display from Gateway of Tally and then from there go to Statutory Reports, then from there go to VAT Reports.
(Gateway of Tally -> Display -> Statutory Reports -> VAT Reports)

Branch Transfer when VAT is applicable

For goods transfer from the various branches of the company, no VAT is attracted, but for maintaining proper accounts. Tally provides different VAT classes for inter-branch transfer transaction.
For example if goods are to be transfered from Kolkata branch to Mumbai branch. In this case of branch transfer outward for kolkata branch create ledger named Delhi branch under Branch/Division group.
Transfer out a/c under sales group and set 'Yes' at the option 'use in VAT'. Select Consignment/Branch transfer outwards and set 'yes' at Inventory values are effected.
In the sales invoice , select the delhi branch a/c in the Party's A/c Name field and at sales ledger select Transfer Out Ledger.
In case of transfer inward, create the ledger as Transfer in a/c under purchase group and voucher class is Consignment/Branch transfer inward.

Rate Difference in VAT

Sometimes it might happen that subsequent to a sale or purchase, the rate per unit of item is revised. In this case, rate difference allowed on purchase or sales are also entered through Debit Note and Credit Note, thus, reducing the purchase and sales value, respectively.

Debit note to supplier

For example your supplier reduces price due to competition and allowed a rate reduction of Rs. 100/each on 5 units of a good supplied to you and issued a credit note for Rs. 520(Rs.100 x 5 + 4% of Rs. 500). Then you pass an entry in Debit note by selecting the name of items and entering the rate difference (Rs.500 in this case) in the amount column and after entering item details, in the next row, press enter and select Input VAT @ 4%.

In the same way you can pass entry in Credit note in case you

VAT in Purchase Return and Sales Return(Debit Note/Credit Note

For passing Purchase return in Tally, Debit note is used and for Sales return, credit note is used. Rate difference allowed by vendor is entered in debit note and when granted to buyer is entered in credit note. Net sales or purchases are taken into consideration for VAT computation.

Sales Return
For example Mr. Rajiv Ghosh returned two monitors worth Rs. 10000/- due to some defects on which VAT @ 4% is charged. Therefore the total value comes to Rs 10400/-( Rs. 10000 + 4% of Rs. 10000)
In this case, select sales @ 4% ledger in the Sales Ledger field in the credit note voucher type. In the item field, give details of item returned worth Rs. 10000. After the items enter, press enter to move the additional aentry area, where you have to select Output VAT@4%, Press Ctrl + A to save the entry.

Purchase Return
For example some goods are returned to supplier due to defects, that are subject to 4% VAT.
In this case, at Debit note field , at purchase ledger field, select Purchase 4% ledger and at item field, enter the details of items, which is to be returned. In the next row press enter to move to the additional accounting entries where you have to select Input VAT @4% from the list of ledger to automatically compute the amount of VAT. Then Press Ctrl + A to save entry.

More than one VAT Rate Invoice entry

Different goods have different VAT rates(say 4% & 12.5%), and its quiet possible that a trader deals in more than one type of good. In this case the purchase invoice entry can be passed in the following way:

• Create Purchase @ 4% Account, Purchase @ 12.5% Account. It should be under Purchase account with VAT rate applicable like Purchase @ 4%, Purchase @ 12.5%.
• Create Input VAT @ 4% Account and Input VAT @ 12.5% Account under Duties and Taxes and select VAT under Type of Duties/taxes and Input VAT @ 4% and Input VAT @ 12.5% under default Tax and VAT class.
• Create suppliers account under sundry creditors if not created.
• Press F12 -> Invoice configuration -> set no at Use common ledger account and no at Allow selection of VAT/Tax class during voucher entry.
• Give item details at the entry at accounting allocation, select purchase-exempted ledger. Then enter item details for each item, select respective Purchase ledger and select the VAT class for each item.
• After completing the item details, select the input VAT A/c for each rate one by one, to get VAT computed on VAT-able items.
  

Sales entry with single VAT rate.

Press F12 -> select Invoice/orders entry configuration -> press enter -> set yes at the option 'Use common ledger for item allocation?' -> press enter.
At Sales @ 4% A/c, select the sales ledger with VAT rate applicable like sales @4%.
Go to Accounting Vouchers from Gateway of Tally and press F8 for sales. There select Sales @ 4% under sales ledger and select sales @ 4% under VAT/TAX class. Enter the item details there. Then after that press enter and select VAT ledger, for example output VAT @ 12%, from the list and provide the rate to be charged. Press Ctrl + A to save the enty.

Ledgers to be created for VAT

Create another Sales, Purchase and VAT ledger and enable 'use as VAT return' as yes.
Purchase and Sales Ledger
Then create purchase and sales ledger for each VAT rates, for example Sales @ 4%, purchase @ 4%, sales @ 12%, purchase @ 12%,etc. You can provide any other suitable name too but do set 'yes' at 'Used in VAT return?' to link the ledger to VAT computation and VAT return.
At VAT/Tax class field, select the applicable VAT classification, which would be selected as default on entry of the sales/purchase ledger.VAT Ledger
In the same way create input and output VAT ledger, for example Output VAT @ 4%, Input VAT @ 4%,Output VAT @ 12%, Input VAT @ 12% etc.

Activation of VAT

For Activating VAT(Value Added Tax) :
Press F11 -> Press F3 -> Set 'enable value added tax(VAT)' as 'yes' -> Enable 'Set/alter VAT details' option as 'yes' -> Enter VAT TIN number and PAN number there -> press enter and save it.













Then come back to Gateway of Tally and press F12 then select Invoice/Orders Entry and press enter. Set 'Allow selection of VAT/Tax class during entry' and 'Warn on Mismatch in VAT Rates' as 'yes'. Then save it.

Value Added Tax(VAT) in Tally

Value Added Tax(VAT) is levy imposed on purchase or sale of goods. It cam into effect from 1st April, 2005 in place of State Sales Tax. As a result, the different states of India will have their own state level structure for VAT. The principle rules and regulations governing VAT in various states will remain same, since, they will be based on the 'White paper on State -Level Value Added Tax' released by the Empowered Committee of State Finance Ministers constituted by the Ministry of Finance, Government of India.

Types of Dealers.
A trader having turnover less than specified limit must not register under VAT Act but if they want to avail the facility of Input Tax Credit, they can register themselves. But traders who have exceeded the limit have to register themselves.

Unregistered Dealer.
Dealers having turnover less than the limit are not registered under the VAT act. They can maintain normal accounts in tally.

Registered Dealer.
Under the VAT Act, registered dealers may have either of the following status:

• Composite Dealer : Dealer having turn over less than the limit determined for composition, and have opte for composition scheme. They need not maintain VAT accounts but are required to maintain proper accounts to get the turnover figure for computation of composite tax.
• Registered Dealer : Dealers exceeding the specified limit must register under VAT Act. They can claim input tax credit and maintain accounts properly as per VAT rules.
  

Budget

We all know, setting up of a budget is an integral part of the job of an accountant, since, it helps in keeping a control over the flow of fund of the organization. Tally allows you to create multiple budgets. There could be a budget for a specific purpose, say for the bank , for the head office, optimistic budget, realistic budget, pessimistic budget,etc. Department-wise budgets can also be created say, marketing budget, finance budget,etc.

Activating Budget.
In order to activate budget Press F11 -> press F1 -> specify 'yes' at the option 'Maintain Budgets and Controls'.

Creating a Budget.
From Gateway of Tally, go to Accounts Info and and select budget. There create a new budget, it will lead you to budget creation screen.

Information to be provided.
Name of the budget can be given as Quarterly budget, Corporate budget,etc.
The top level is primary budget. You can set up more than one primary budget. Under each primary budget, sub-budgets with different names can be created.
Specify the period of budget.
You may want to set/alter the budget for group of ledger accounts or for ledger accounts individually or for cost centres or all of them. We shall take up budget for group first.
Specify 'yes' at group. If you want to set budget for a group, thereby setting budget for all ledgers under the group. Fill in the following fields.

Post Dated Entries

For post dated entries in any voucher, Press Ctrl + T. Post Dated Entries means that the entry in made now but it wont effect the Profit and Loss Account or Balance sheet. The effect will take place after the actual amount is received.
This entries are useful in cases like post dated cheques are receipt or paid, or in case of bills.

Reversing Journal

For Reversing Journal go to Accounting vouchers and press F10. If any mistake is done it can be rectified with the help of Reversing Journal.
There is a possibility that by mistake you have to rectify the mistake without deleting the entry, as deleting the entry will effect the Profit and Loss Account and Balance Sheet.
In this case you have to use Reversing Journal. These adjustment has to be done by placing the proper ledger in debit side and the other ledger in credit side.

Memorandum Voucher

First activate this voucher by first pressing F11 -> F1 -> set 'Use reversing journal and optional' as 'yes'.
For memorandum voucher go to Accounting Vouchers and press Ctrl + F10.

Why memorandum Voucher is used??
This question can be answered by a simple example.
Suppose a employee of a company is being sent to some place for a week or so. Company provides him Rs. 3000 as travelling expenses and tells him that he has to show each and every expenses made by him. In this case the Accountant enters Rs. 3000 as expenses but he unaware of the actual amount at that very moment, he will come to know about it after the employee returns.

In this case, the you will pass an entry n memorandum voucher showing that Rs. 3000 has been given to the employee as travelling expenses. Then after the employee comes back you will come to know about the exact amount and then go to Display -> Day book -> select the voucher entry previously made -> Make necessary changes -> Press F5 for payment/F6 for receipt.If the expenses made by the employee is more than what was paid by the company before then payment has to made, and if the expenses are less then receipt is to be done.

Optional Voucher

If you don't want any entry to be shown in the Profit and Loss Account. Then press Ctrl + L in any place.
It can be done while passing vouchers i.e. receipt, payment, journal, contra, etc. It can be done in any voucher. If you want it to be shown in the Profit and Loss Account then open the entry and press Ctrl + L again.
To change the date press F2.

Bank Reconcilliation Statement(BRS)

Reconciling the companies bank accounts with the banker's statement is a fundamental and routine task of Accounting. in Tally Reconciliation can be done for any company.
The process in Tally is linked to the information that is provided while creating bank ledger. You will notice that the moment you select the 'bank account' group for a bank ledger, the field- "Effective Date for Reconciliation" appears. Normally this would be the 'Book Beginning from' date itself. You can also specify any other date reconciliation as per your needs. It may be noted that any transaction prior to the 'Effective Date for Reconciliation' will not be considered for reconciliation purpose. After creating all bank accounts and passing the necessary transaction purpose. After creating all bank accounts and passing the necessary transactions with them you need to reconcile the Bank Book with the Bank Statement.

In order to that perform the following:
Gateway of Tally -> Display -> Accounts Books -> Cash/Bank Book(s).
Select the bank whose balance you want to reconcile. Select the month which the bank balance you want to reconcile. Press F5. Put the dates of clearing amount i.e. the date when the amount goes out of bank.

Job Costing

Job costing is used in case any project work is going on for the company. Material are sent to different sites where work is going on. These sites can be created through job costing.

First press F11 and then F1, set "Use Cost Centre for Job Costing" as 'yes'.
Go to cost Catagory(Accounts info -> Cost Catagory -> Create) and create a catagory named project or sites. Then go to Cost centre(Accounts info -> Cost Centre -> Create) and create the name of the projects or sites where the work is being done. While creating thes cost centre set 'use job costing' as 'yes'.
Then create godown from where the material are supplied to these site/projects.
Then we have to alter voucher type Stock journal and create a class named job costing there and set "Use class for job costing" as "yes".

Then inorder to transfer the stock item from godown to site/project area, go to accounting vouchers press ALT + F7 select stock journal and class as job costing. Then pass the entry.

Receiving Interest

Go to display -> Statement of Accounts -> Interest Calculation -> Interest Payable/Interest receivable. Press F2 and give the date there.
Then receive interest through Accounting Voucher.

Interest Calculation

Create a ledger named 'Investment'.
Then press F11 and then press F1, set "Activate interest calculation" and "use advanced parameter" as 'yes'.
Then Alter the ledger Investment created and set the 'interest calculation option' as 'yes'. There you give the all the information required i.e. the rate of interest, time period, rounding(rounding off the decimal value), etc.

Printing of Vouchers and other documents

An organization may need to Print vouchers, balance, Profit and Loss Account and other documents. In order to print just press ALT + P on the page you want to print.

Negative stock warning

In reality, physical balance of stock cannot go negative, but while passing entry in Tally, if your stock balance is going negative then surely you are making some accounting mistake. You can prevent this by configuring Tally to meet your requirement. Press F12 at inventory voucher screen and activate the option "Warn on negative stock balance?". Now everytime while passing inventory voucher if you enter any quantity which will make your stock negative, Tally will give a warning message displaying the figure by which your stock balance is going negative.

Actual and Billed Quantity entry in Voucher

In many cases, the actual quantity and the billing quantity differs due to supply of free samples, allowances for defective items, etc. Tally enables you to mention both the quantity in invoice voucher just by activating a feature. Press F11 and set 'yes' to the option "Use different Actual and billed quantity?" at the Inventory Vouchers screen. Enter the actual quantity and billed separately in their respective columns. But the value will be calculated based on the basis of billed quantity.

Manufacturing Entry

It is posssible to maintain Manufacturing inventory in Tally. In other words, an organisation engaged in manufacturing activities can use Tally to record all processes involved in manufacturing. To do so you have to follow some specific steps.

First create a new voucher named Manufacturing Entry under Stock Journal.

Inorder to create the voucher go to Accounts Info from Gateway of tally -> Voucher Type -> Create. There select type of voucher as Stock Journal and set 'Use as a Manufacturing Journal?' as 'yes'.

Then create godown and stocks.

Press F12 and select "Accts /inventory info" and press enter. There set 'Allow component list details(Bills of Materials/BOM)' as 'yes'.

While stock creation incase of stock items which are raw material i.e. it is used for production of the finished good, in this case the BOM option will remain no. But in case of finished goods the BOM option should be set as yes.

Incase the BOM is no.

Incase BOM is yes i.e. the item you are creating is a finished product. So you have to enter the raw materials used for the product and the quantities needed for producing 1 unit of the finished product.

Finally to record manufacturing transaction using the manufacturing journal entry, from the gateway of tally, go to inventory voucher, press ALT + F7 and select "manufacturing entry" and press enter.

Select the name of the finished good from the pop-up list, then select the godown from the list where the finished goods will be stored. Give the number of units of finished goods you want to manufacture . Press enter to save all the materials.

There can be expenses for manufacturing a product, you can show that on the right hand side in terms of percentage or by typing the amount, you have to create a ledger under expenses(direct/indirect).

Transfer Stock

You can transfer stock from one godown to another through Stock Journal. Go to Accounting Vouchers from Gateway of tally and press ALT + F7, stock journal will open.

On the left hand side select the name of the commodity you want to transfer and the name of the godown from where you want the commodity to be send and on the right hand side write the destination place of the commodities. The stocks will be transferred.

Point of Sale

In an organization the parties/debtors may not pay the full amount in cash or cheque. In this case we have to create a new voucher named "Point of Sale" under sales. It will help in keeping records of how much the payment is made on credit card or through voucher or through cheque or cash.

First you have to create a voucher by going to Accounts Info -> Voucher Types -> Create -> Give the name as 'Point of Sale' -> Then type of voucher as 'Sales' -> Set POS invoicing as yes -> In place of print message 1 you can give an ending message you want to convey to your customers -> Give name of class as 'POS'.

Then select the name of the company whose vouchers are used and the banks where the amount for credit cards and cheques will be deposited and then give the percentage to be allocated.

(If you see that you have not created a required ledger then press ALT + C. You can create a new ledger. Same method is applicable in case of stock items and other fields)


To bring the mode Point of sale got to Accounting vouchers and then press F8 and from there chosse Point of sale and select POS invoicing. Then pass the voucher. If the modes of payment are not given then press Ctrl + P.