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

10. 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

11. Party Ledger Creation:
Name Aryan Traders
Under Sundry Creditors
Maintain balances bill by bill Yes
Inventory value are affected No
Country India
State Karnataka
Pincode 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
IsGST applicable Applicable
Set/alter GST details No
Type of Supply Goods

12. 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

18. Purchase Entry:

19. E-Way Bill Details:

20. 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
Pincode 600018
Registration Type Regular
GSTIN/UIN 33AAACK1257L1ZC
Party Ledger Creation:
Let us classify the taxability of this transaction:

21. Name Inter State Sales
Under Sales Accounts
Inventory values are affected Yes
Type of Ledger Not applicable
IsGST 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:

22. Party Ledger Creation:

23. Sales Ledger:

27. 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
Pincode 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
IsGST applicable Applicable
Set/alter GST details Yes,SAC-456789
Type of Supply Services

28. 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

29. Party Ledger Creation:

31. 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.

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

33. Tax Deducted at Source

34. 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

35. 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

36. 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.

37. 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

38. 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.

39. 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)

40. 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

41. TDS Nature of Payment creation screen

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

43. 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

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

45. 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

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

47. 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

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

50. TAXATION

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

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

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

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

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

56. 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

57. 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

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

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

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

61. FORMS TO FILE TDS RETURN
• EMPLOYEE: 24Q (SALARY)
• DEDUCTEE: 26Q27Q27EQ (COMMISSION,
SERVICE, INTEREST PAID, ETC)
61

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

63. G S T
• GST WAS INTRODUCED IN THE YEAR 1ST JULY
2017
• India is the 166th 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

64. 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

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

66. • 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

67. 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

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

69. 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
• 13TH DIGIT IS ENTITY CODE
• 14TH DIGIT IS DEFAULT CHARACTER IS Z
• 15TH IS RANDOM AS A-Z (OR) 1-9
69

70. 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

71. Thank You
71