-Advanced Tally with Goods and Service Tax .pptx

Advanced Tally with GST

1. Goods and Services

2. India is a federal country where both the center and the states have the powers to levy and collect taxes through appropriate legislations. They have distinct responsibilities to perform according to the powers prescribed by the constitution. Accordingly, The center can levy tax on the manufacture of goods and rendering of services. The state can levy tax on the sale of goods

3. Why GST? The indirect taxation system had inefficiencies and limitations due to: Multiple taxes Multiple tax rates Multiple points of taxation GST allows seamless flow of tax credit, and eliminates the cascading effect of all the indirect taxes in the supply chain- from manufactures to retailers, and across state borders.

4. Here are some reasons to explain why: Simple Tax Structure: GST replaces a number of indirect taxes. Further, uniformity in tax rates, and structure of taxation makes GST simpler to understand and easy to administer. Eliminates cascading effect of taxes: The input credit set-off process is seamless, and the benefit is duly passed on to consumers. Technology Driven System: A robust and comprehensive IT system would be the foundation of the GST regime in India. Therefore, all tax payer services such as registrations, returns,payments,selfassesment,and so on would be available to the taxpayers online , making compliance easy and transparent. Increased Revenue: A simpler tax structure can bring about greater compliance, thus increasing the number of tax payers and in tum tax revenues for the government. The elimination of the cascading effect will directly result in price reduction of products which will benefit the end consumer.

5. What is GST? GST is tax on supply of goods and services with input credit setoff available at the next stage of value addition from manufacture to distributor to retailer until the end consumer. This means suppliers at each stage are permitted to set off the GST paid on the purchase of goods or services against the GST to be paid on the supply of goods or services respectively. The end consumer will thus pay only GST charged by the last dealer in the supply chain. Since taxes at each stage are set-off, cascading effect gets eliminated.

6. Supply of Goods and Services We know that all the different indirect taxes are subsumed under GST. This means, the concept of manufacture of goods, sale of goods, and provision of services will no longer be relevant. This makes the determination of point of taxation for GST simple. The taxable event under GST is the supply of goods and services Thus, for every business, it is important to understand the relevance of supply. Supply sets the scope of transactions liable for the levy of GST.

7. GST registration In the pre-GST tax structure, businesses registered under VAT were assigned TIN, and service providers had service tax registration numbers. Now, all businesses will be unified under the one-tax- GST. This leads to unified tax registration of all businesses. Being registered under the GST law means a business is acknowledged by the government of India, as a supplier of Good and services. Only registered businesses are allowed to claim Input Tax Credit. On registration, each business will be allocated a unique 15 digit PAN based registration number. This is called the GST identification Number(GSTIN)

8. Goods and Services Tax Enabling GST and Defining Tax details Gateway of Tally> Fll - Features> Taxation   Enable Goods and Services Tax (GST)-Yes

9. Transactions using GST (Goods) Havana Yukta Solutions purchased the following goods from Aryan Traders, Karnataka the supplier invoice no: AT-01, with Central Tax-9% and State Tax-9% Name of Item Quantity Rate Amount Computer 10 15,000 1,50,000 Let us classify the taxability of this transaction: Location of Supplier Aryan Traders, Karnataka Place of Supply Havana Yukta Solutions, Karnataka Taxes Applicable Central Tax and State Tax

10. Party Ledger Creation: Name Aryan Traders Under Sundry Creditors Maintain balances bill by bill Yes Inventory value are affected No Country India State Karnataka Pin code 560029 Registration Type Regular GSTIN/UIN 29AAACA1235R1Z3 Purchase Ledger: Name Intra State Purchase Under Purchase Accounts Inventory values are affected Yes Type of Ledger Not applicable Is GST applicable Applicable Set/alter GST details No Type of Supply Goods

11. Tax Ledgers: Name Central Tax Under Duties & Taxes Type of Duty GST Tax Type Central Tax Name State Tax Under Duties & Taxes Type of Duty GST Tax Type State Tax Stock Item Creation: Name Computer Under Primary Units Nos - Numbers GST applicable Applicable Set/alter GST details Yes Description Computer HSN code 123469 Calculation type On Value Taxability Taxable Integrated Tax 18% Type of Supply Goods  

12. Purchase Entry:

13. E-Way Bill Details:

14. Havana Yukta Solutions sold following Goods to Kanva solutions, Tamilnadu supplier Invoice No: KS-01, with Central Tax-9% and State Tax-9%   Name of Item Quantity Rate Amount Computer 10 23,000 2,30,000 Location of Supplier Havana Yukta Solutions, Karnataka Place of Supply Kanva Solutions, Tamilnadu Taxes Applicable Central Tax and State Tax Name Kanva Solutions Under Sundry Debtor Maintain balances bill by bill Yes Inventory value are affected No Country India State Tamilnadu Pin code 600018 Registration Type Regular GSTIN/UIN 33AAACK1257L1ZC Party Ledger Creation: Let us classify the taxability of this transaction:

15. Name Inter State Sales Under Sales Accounts Inventory values are affected Yes Type of Ledger Not applicable Is GST applicable Applicable Set/alter GST details No Type of Supply Goods Name Integrated Tax Under Duties & Taxes Type of Duty GST Tax Type Integrated Tax Sales Ledger: Tax Ledgers:

16. Party Ledger Creation:

17. Sales Ledger:

18. Transactions using GST (Service) Havana Yukta Solutions received an invoice from Al Solutions Karnataka, for Computer Services Rs.9750 with Central Tax-9% and State Tax-9% Party Ledger: Name Al Solutions Under Sundry Creditors Maintain balances bill by bill Yes Inventory value are affected No Country India State Karnataka Pin code 560010 Registration Type Regular GSTIN/UIN 29AARCA1235S1Z2 Expense Ledger: Name Computer Services Under Direct Expense Inventory values are affected No Type of Ledger Not applicable Is GST applicable Applicable Set/alter GST details Yes,SAC-456789 Type of Supply Services

19. Tax Ledgers: Name Central Tax Under Duties & Taxes Type of Duty GST Tax Type Central Tax Name State Tax Under Duties & Taxes Type of Duty GST Tax Type State Tax

20. Party Ledger Creation:

21. Doing Entry by using Purchase Account Invoice Voucher, To convert voucher mode to Account or Item Invoice mode (OR) Account or Item Invoice mode to Voucher mode Press CTRL+ H.

22. GST Reports: Gateway of Tally > Display More Reports > Statutory > GST Reports

23. Tax Deducted at Source

24. TDS stands for Tax Deducted at Source. The concept of TDS was introduced in the Income Tax Act,1961, with the objective of deducting the tax on an income , at the source of the income. It is one of the methods of collecting Income Tax, which ensures regular flow of revenue to the Government. Basic Concepts of TDS It is important to understand some of the terminologies and concepts of TDS: Scope and Applicability

25. At present, incomes from several sources are subjected to TDS. Some of the incomes which are subject to TDS are: Salary Interest on securities , debentures Deemed dividend Interest other than interest on securities Winnings from lottery or crossword puzzles Winnings from horse races Payment to contractors (advertisement contractors) Payment to contractors (other than advertisement) Payment to sub-contractors Payment to sub-contractors Payment to non-residents Payment to non-resident sportsmen or sports association Payment in respect of deposit under NSS Payment on account of re-purchase of units by mutual fund or UTI Payment in respect of units to an offshore fund Payment of compensation on acquisition of immovable property Insurance commission Commission , brokerage etc Rent of land,machinery or equipment Royalty agreement made on or after june 1,2005 Shirt-term capital gains U/s 11lA Fees for professional or technical services Any other interest on securities Income by way of long term capital gains referred to in section 115E

26. What is TAN? TAN is the Tax Deduction Account Number issued by the income tax department to all persons deducting tax at source. TAN has to be quoted in all relevant challans , tax deduction certificates, TDS returns and other notified documents. To obtain TAN, the persons or organization is required to apply in Form 49B to the TAN Facilitation centers of NSDL. Who has to deduct the TAX? Any person making the payments to third parties as specified in the scope and applicability section mentioned above are required to deduct tax at source. Who is Deductee? A deductee is a third party that provides services and bills to the buyer and the buyer will then deduct the tax at source at a prescribed rate, before paying the bill amount.

27. Deductee may belong to any of the following categories. Individual Hindu undivided family (HUF) Body of individual Association of persons Co-operative society Local authority Partnership firm Domestic company Foreign company Artificial judicial person

28. TDS in TallyPrime The TDS module in TallyPrime is integrated with financial accounts and takes care of all the TDS and e-TDS requirements of your business, right from voucher entry to report generation. TallyPrimecompletely automates your TDS management accurately computes tax to be deducted at source & TDS payable amount, and generates TDS payment challan , TDS certificates, Statutory Returns and their related MIS reports   Its e-TDS features further assist you to file your mandatory tax returns in electronic format as specified by the Income tax department. It helps in minimizing error-free entry of information, incorrect remittances and also provides accounting for interest and penalties for smooth and effective functioning of your business.

29. Deduct TDS in same voucher: Yes PAN/IT No: BACCA1357V (If PAN No of the Party is not mentioned in Party Ledger, TDS will get deducted @ 20% Automatically)

30. Creating Expenses Ledger Name: Rent Under: Indirect Expenses Inventory values are affected: No Is TDS Applicable: Applicable Nature of Payment: Rent of Land, Machinery or Equipment

31. TDS Nature of Payment creation screen

32. Fill the details of Company TDS Deductor Details as given in below picture

33. Transactions with TDS Havana Yukta Solutions is accountable to pay rent Rs 75000. Company decides to deduct the TDS @ 10% on the same bill and pay the remaining amount to Arcade Agencies. Creating Party Ledger: Name: Arcade Agencies Under: Sundry Creditors Maintain balances bill by bill: Yes (Compulsory) Inventory values are affected: No Is TDS Deductable : Yes Deductee Type: Company - Resident  

34. Creating TDS Ledger Name: TDS on Rent Under: Duties & Taxes Type of duty/tax: TDS Nature of Payment: Rent of Land, Machinery or Equipment

35. Voucher Entries First make a Entry for accountable to pay rent to Arcade Agencies with TDS deduction in F7- Journal Voucher as given in below picture

36. Now make a payment Entry to Party in F5 - Payment Voucher as given in below picture

37. Finally make a TDS Payment Entry which you remitted to Government in F5 - Payment Voucher For this Entry you need to do Auto fill by pressing Ctrl+F in FS - Payment Voucher screen

38. TDS Reports Gateway of Tally > Display More Reports > Statutory > TDS Reports > 26Q  

39. TAXATION

40. What is meant by tax? Tax is a part of amount paid to the government for our purchase, sales, service & income. 51

41. Main Classifications of tax GST – Goods service tax CD – Customs duty TDS – Tax deducted at source TCS – Tax collected at source 52

42. Types of taxes Two types: Direct tax Indirect tax 53

43. Direct tax: The tax which levies on and paid by the assesses is called direct tax. Ex: TDS & TCS 54

44. Indirect tax: The tax which passed on to the ultimate customer is called indirect tax. Ex: GST & CD 55

45. INCOME TAX INCOME TAX ACT WAS INTRODUCED IN THE YEAR - 1961 AS CITIZEN OF INDIA ACCORDING TO IT ACT WE NEED TO PAY INCOME TAX AMOUNT AS WELL FILLING RETURNS FOR OUR INCOME THROUGH PAN PAN – PERMANENT ACCOUNT NUMBER 56

46. TDS – TAX DEDCUTED AT SOURCE TDS IS A PART OF INCOME TAX ACT 1961. AS owner of a company we also responsible to deduct tax amount from our employee and deductee after obtaining TAN to our company name. TAN – TAX ASSESSMENT NUMBER 57

47. PAN STRUCTURE – 5 ALPHA 4 NUMERIC AND 1 ALPHA 4 TH WILL BE PERSON TYPE 5 TH WILL BE PERSON NAME FIRST LETTER. 58

48. 59 TAN STRUCTURE – 4ALPHA 5NUMERIC & 1 ALPHA FIRST 3 ALPHA WILL BE REGION CODE – BLR 4 TH ALPHA WILL BE COMPANY NAME FIRST LETTER TO APPLY FOR PAN – form 49A TAN – form 49B

49. TDS OR YOUR IT PAYMENT CAN BE DONE THROUGH BANK ONLY (PAYMENT SHOULD DONE WITH IN 7 TH OF EVERY MONTH) WE CAN DO TDS OR IT PAYMENTS THROUGH CHALLAN NO: 280/281 TDS RETURNS COMPULSORY FOR EVERY QUARTER. 60

50. FORMS TO FILE TDS RETURN EMPLOYEE: 24Q (SALARY) DEDUCTEE: 26Q\27Q\27EQ (COMMISSION, SERVICE, INTEREST PAID, ETC) 61

51. ISSUING TDS CERTIFICATE TO EMPLOYEE: FORM 16 DEDUCTEE: FORM 16-A 62

52. G S T GST WAS INTRODUCED IN THE YEAR 1 ST JULY 2017 India is the 166 th country to adopt gst rules The first country to adopt GST rules is France in the year 1954 GST Means one nation one type of tax 63

53. GST CLASSIFICATIONS : CGST- CENTRAL GOODS AND SERVICE TAX SGST – STATE GOODS AND SERVICE TAX IGST – INTEGRATED GOODS AND SERVICE TAX UTGST – UNION TERITORY GOODS AND SERVICE TAX 64

54. COMMON TAX PERCENTAGES IN GST ACT EXEMPT NIL RATED 3% 5% 12% 18% 28% 65

55. GST is also called as destination-based tax TAX PAYABLE = OUTPUT TAX – INPUT TAX   ITC – INPUT TAX CREDIT SYSTEM   CGST-100 SGST -100 IGST -100 CGST -50 SGST -50 IGST -50 IGST – 50 IGST -50 CGST -25 SGST -25 66

56. E-WAY BILLING UPTO 100 KMS -1DAY (24HRS) 101KMS -300KMS -3DAYS 301 -500 KMS -5DAYS 501 -1000 KMS -10DAYS ABOVE 1000KMS EACH 100 KMS ONE DAY EXTRA 67

57. 68 HSN & SAC: HSN- HARMONISED SYSTEM OF NOMENCLATURE SAC- SERVICE ACCOUNTING CODE HSN (OR) SAC WILL BE 4 DIGIT NUMBERS TO 8 DIGIT NUMBERS

58. GSTIN – GOODS AND SERVICE TAX IDENTIFICATION NUMBER. CONSIST OF 15 DIGITS FIRST 2 WILL BE STATE CODE ACCORDING TO KARNATAKA – 29 NEXT 10 WILL YOUR PAN 13 TH DIGIT IS ENTITY CODE 14 TH DIGIT IS DEFAULT CHARACTER IS Z 15 TH IS RANDOM AS A-Z (OR) 1-9 69

59. GSTR FORMS – GOODS AND SERVICE TAX RETURN FORMS GSTR-1 FOR SALES GSTR-2A & 2B FOR PURCHASE GSTR-3B FOR MONTHLY RETURNS GSTR-9 FOR ANNUAL (REGULAR DEALER) GSTR-9A FOR ANNUAL (COMPOSITE DEALER) 70

60. Thank You 71