New Stat.900 Version is available free for existing Tally User
Major Enhancement are :
As per the notification, effective 17 Sep 2016, the following VAT classifications are provided to support the revised VAT rate from 5.5% to 6% :
Composition Tax – Restaurant Etc @ 6%
Composition Tax – Retail @ 6%
CST @ 6%
CST – Works Contract @ 6%
Input VAT @ 6%
Input VAT – Works Contract @ 6%
Input VAT – Works Contract @ 6% (Construction)
Interstate Purchases @ 6%
Output VAT @ 6%
Output VAT @ 6% on Works Contract (Construction)
Output VAT – Works Contract @ 6%
Purchases – Capital Goods @ 6%
Sales – Restaurant Etc @ 6% (Composition)
Sales Retail @ 6% (Composition)
As per the notification, effective 17 Sep 2016, the following VAT classifications are provided to support the revised VAT rate from 12.5% to 13.5% :
Composition Tax – Motor Vehicle @ 13.5%
CST @ 13.5%
CST – Works Contract @ 13.5%
Input VAT @ 13.5%
Input VAT – Works Contract @ 13.5%
Interstate Purchases @ 13.5%
Output VAT @ 13.5%
Output VAT – Works Contract @ 13.5%
Output VAT – Works Contract @ 13.5% (on Going)
Purchases – Capital Goods @ 13.5%
Sales Motor Vehicle @ 13.5% (Composition)
Note: Currently, the values from transactions recorded using the above classifications are captured in the VAT Computation report. In the future releases, the relevant VAT forms will be enhanced to capture these values.
One of the fundamental features of GST is seamless flow of input credit across the chain (from the manufacture of goods till it is consumed) and across the country. In this section, let’s discuss about various conditions laid down by law to avail input credit on supply of goods or services.
All of the following conditions need to be satisfied to avail Input credit:
• The dealer should be in possession of Tax Invoice / Debit or Credit Note / Supplementary Invoice issued by a supplier registered under GST Act.
• The said goods/services have been received.
• Returns (GSTR-3) have been filed.
• The tax charged has been paid to the government by the supplier.
What do these conditions imply?
Once GSTR-1 (Outward supply details) is filed by the supplier, recipient has a visibility of the purchase through the auto populated GSTR-2 (Inward supplies details). After necessary modification, additions (if any) and acceptance, the Input credit will be credited to the recipient’s electronic credit ledger on a provisional basis.
Input credit will be available only when the Monthly returns (GSTR-3) are filed by the supplier along with payment tax.
Let us understand this with an example
Super Cars Ltd, a manufacturer of cars purchased 30 tons of steel from Ratna Steels. Ratna Steels supplied steel and issued tax invoice on 5th April with GST of 2, 40,000.
With this example, let us examine the process to understand the flow of availing input credit.
GSTR-1: Furnish all outward supply details on or before 10th of Subsequent month.
GSTR-2: This is auto-populated by System on 11th of subsequent month. This includes all inward supplies details
GSTR-3: Monthly Return auto populated by system on 20th of subsequent month
GST (Goods & Service Tax), a single unified tax system aims at uniting India’s complex taxation structure to a ‘One Nation- One Tax’ regime. It is the biggest tax reform since India’s independence.
What does this mean? What will be its impact?
GST proposes to remove the geographical barriers for trading, and transform the entire nation to ‘One Common Market Place’.
Let us understand the fundamentals of GST, it is a dual concept tax system. Under this system, tax is administered, collected, and shared by both the Centre and the State governments, based on the nature of transaction (within the state or interstate).
The tax components of GST
While we now know the tax components of GST, it is equally important for you to know the taxes existing in the current regime, and how they are subsumed under GST.
In the current regime of indirect tax system, the chain of input credit, at a certain point, is broken. Let’s say Central Sales Tax (CST) applicable on interstate trade is non-creditable, leading to a break in the input credit chain. Similarly, a manufacturer charging excise duty on sale to a dealer causes the chain to break. This leads to taxes forming a part of the product cost.
In the year 2005, VAT was introduced with the similar objective to overcome cascading affect. If VAT was designed to eliminate it, how is it different in GST?
Yes, VAT eliminated the cascading tax effect on the state indirect tax, while the cascading effect of other indirect taxes still remained. GST allows for seamless flow of tax credit, and eliminates the cascading effect of all indirect taxes in the supply chain from manufacturers to retailers, and across state borders.
Let us examine this with an example of car as a product with overall rate of tax being considered @22% under existing and GST regime – to illustrate elimination of tax on tax
Savings of 5,280 catching your eyes! Isn’t it? Let’s us examine this.
If you observe closely, in the example, the taxes paid by dealer (CGST + SGST) to manufacturer is not added to cost. This is because GST allows the dealer to set off the tax liability of CGST+SGST. This is one of the fundamental features of GST, which allows seamless credit from manufacturer to dealer, and eliminates the cascading effect.
The new Tally.ERP 9 Release 5.4.3 is available now!
Whats new in Tally.ERP 9 Release 5.4.3
As Jewellery Business is under central excise, we have enhanced the title of the sales invoice and type of copy, as per rule 8 of Articles of Jewellery.
The change in file name and increase in length of fields in Maharashtra e-VAT template are supported.
For a better license management experience, we have simplified the text on licensing related screens and e-mails.
MAV error does not occur when you mark reconciled bank vouchers as Optional.
The currency of a party ledger is retained when it is imported into a company with a different base currency and with multi-currency enabled.
When you view the POS extract report remotely, only the POS sales transactions are displayed, as expected.
Release 5.4.3 – Highlights :
To support Article of Jewellery Rules to make jewellery establishments part of Central Excise:
An option is provided in Excise Registration Details screen to set a company as jewellery business.
The title of sales invoice of jewellery business is changed to ISSUE OF INVOICE UNDER RULE 8 OF ARTICLES OF JEWELLERY (COLLECTION OF DUTY) RULES, 2016 as per Rule 8 of Articles of Jewellery Rules, 2016.
When number of copies of sales invoice is more than 1, the type of copy title is changed to Original for Buyer for the first copy, Duplicate for Assessee for the second copy, and Not for CENVAT from the third copy.
In an accounts only company, while creating a sales invoice in Accounting Invoice mode, the Billwise Details screen did not appear if,
the invoice was created by selecting a sales voucher type and
the options Enable default accounting allocation? and Set/Alter Default Accounting Entries? are enabled in the sales voucher type. This issue is resolved.
MAV error occurred when,
two payment vouchers with bank as party ledger were created and reconciled
the later payment voucher was made optional and
the payment vouchers were created in Release 5.4 and Release 5.4.1 This issue is resolved. If you are using an earlier version of Tally.ERP 9, run the rewrite procedure to solve this problem..
Show Nett Rate? option in F12:Configure of Stock Query report is set to No, by default.
When Godown Summary was viewed at stock group level, all stock items grouped under the stock group were displayed even if,
the stock item does not belong to the selected godown, and does not participate in any transaction, and
the option Exclude stock items with no transaction? was enabled. This issue is resolved.
The Page size was getting reset to default when Columnar Register was exported to PDF, with Show Columnar Register? enabled. This issue is resolved.
The company logo is displayed, when vouchers are e-mailed in HTML format. To view the company logo in the voucher, open the company logo, and open the HTML file.
When printing purchase order, delivery note and receipt note from display mode, the title was getting printed as Purchase order voucher, Delivery Note voucher, and Receipt Note voucher, instead of PURCHASE ORDER, Delivery Note, and Receipt Note, respectively. This issue is resolved.
In the reports displayed on drilling down to ledger level from Collection Details section in Form 27EQ report, the values were not printed and only header information appeared. This issue is resolved.
The date format exported to VAT Form 15, Annexure 23 and 24 excel templates was incorrect. This issue is resolved. Now, the date is exported in DD/MM/YY format, and not with – as the separator.
CST annexure Form C was not capturing CST value from interstate purchase transactions, and only assessable value was displayed. This issue is resolved. Now, CST annexure Form C combines CST amount with assessable value, and displays the value as Total Amount of Goods.
Form 7A was displaying assessable value and tax amount for non-creditable purchase as a combined value. This issue is resolved. Now, assessable value and tax amount from Non Creditable Purchase – Special Goods transactions are displayed in separate columns in Form 7A.
Details of Form 12A could not be migrated from Release 4.9x to 5.3.2. This issue is resolved. Now, the migration process is enhanced to migrate details updated in Form 12A.
In the CST number field of annexures Part GG, Part I, Part L,and Part M, provision is made to display alphanumeric and special characters, and to accept values with length up to 14 characters. The field will be exported to e-VAT templates, as per the requirement.
The Local Sales Tax number field in POS invoice print out is changed to Company’s VAT No.