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Commodity wise VAT Reports in Tally


Tally ERP 9 enables you to check how much amount of VAT is levied on individual Commodity. Absolutely you can watch this under Statutory Reports in Tally ERP 9. Apart VAT Computation for a specific period you can see VAT Amount and information about each and every Stock Item using VAT Commodity reports. You can get the report separately by Purchase wise and Sales wise only using VAT Commodity.

In order to check Commodity wise VAT report

  1. Load your company where you have enabled VAT and created VAT Commodity and made the Voucher entries.
  2. Get back to Gateway of Tally screen.
  3. Select Display under Reports.
  4. Click on Statutory Reports.
  5. After that go with VAT.
  6. And select VAT Commodity.
  7. In the Commodity Report you can click on either Purchase or Sales to check the report in connection with such transaction.

Tally ERP 9 will generate VAT and TOT Return Forms


Are you facing problem in preparing VAT Return Forms for submitting to the Commercial Tax Department? May it would be Monthly VAT Returns Form, Quarterly Purchases or Sales Forms of VAT Dealers or TOT Dealers. Most of you would be doing this reporting by getting the various VAT Forms from the Commercial Tax Department and filling it up manually. It would lead to the missing out figures or even misplacing the unit values in wrong unit place such as writing 5,579/- instead of 5,597/-. So, it can be rectified by enabling VAT in Tally ERP 9 and Accounting Taxation Voucher entries.

Image: Auto Generate Various Monthly Quarterly Tax/VAT Return Forms in Tally ERP 9

Make Taxable Purchases and Sales Voucher entries in Tally ERP 9. You can just take the print of VAT Forms 200, 226A, 226B, 227A, 227B, 228A as per entries you have entered.

  1. Get the Gateway of Tally screen.
  2. Select Display under Reports.
  3. Statutory Reports.
  4. VAT.
  5. Finally, click on VAT Return Forms. You can get the VAT Forms of your requirement shown below.

VAT Register shows Detailed information


Verifying the Invoice details before submitting VAT Returns is the most important thing that a Tax Consultant must do. He/she must make proper changes to the Voucher entries of concerned Invoices in Tally ERP 9. So, to do this Tally Solutions has set a platform called VAT Register where all the Tax Invoices are placed in a single place. If you are handling your Books of Accounts manually then you need to gather all your Invoices before calculating the TAX amount. If you handing that in Tally ERP 9 it will calculate automatically, so it is better to check the Invoices in Tally ERP 9 than manually. Wouldn't you?

Purchase TAX/VAT Invoices Register in Tally ERP 9 Image

So, let’s start to verify the Invoices using VAT Register

  1. Load you Company where you have configured and made the Taxable Voucher Entries.
  2. Get the Gateway of Tally screen.
  3. Select Display under Reports.
  4. Here go with Statutory Reports.
  5. And select VAT and after that VAT Register
  6. Here you can see VAT Purchases and VAT Sales.
  7. Click on option which one you want to check.

Note: If you want to know in detail press ALT + F1 Keys from Keyboard or click on F1: Detailed in Button Area

Sales Return (or) Credit Note VAT Entry


Sales Return transactions are entered through Credit Note Voucher in Tally Accounting Business Software Package. Here we are recording a Sales Returns transaction by taking Taxation and Inventory in effect. As this is the one of the accounting transactions, to record this in Tally it is grouped under Transactions in Gateway of Tally screen. Transactions are recorded using Vouchers so you need to go with Accounting Voucher.

VAT/Value Added Tax @ 5% Sales Return/Credit Note Voucher Entry in Tally ERP 9 Image

VAT Sales Return transactions in Credit Note Voucher Entry

In this article I am showing you the way to record the Sales Tax/VAT(Value Added Tax) of 5% Sales Returns transactions.Required Ledgers, Stock Items to proceed the transaction

  1. Create a Company in Tally ERP 9.
  2. Enable VAT for that Company.
  3. Create Sales Return Ledger with 5% VAT.
  4. Create Output VAT 5% Ledger.
  5. Create VAT Commodity.
  6. Create Stock Item.

Note: Even you can use Sales Ledger instead of creating Sales Return Ledger. It shows the same effect for Credit Note Voucher Entry.

Voucher Entry Step by Step

After creating the required Ledger and Stock Items as said above you need to follow the following steps. Select Accounting Vouchers Gateway of Tally screen.

  1. Get the Gateway of Tally screen.
  2. Select Accounting Vouchers under Transactions.
  3. Select F8: Credit Note button in Button Area.
  4. Required columns are mandatory to fill, they are Date, Party Name, Ledger Name, VAT/Tax Class, Stock Item, Quantity, Rate, and VAT Ledger.
  5. Optional columns can be left without filling, they are Ref, and Narration.

This is the simple way of recording the VAT Sales Returns.

VAT Sales Entry including Transport Charges


VAT Taxable Sales voucher entry can be done using any one of two methods in Tally ERP 9

  1. Using Voucher Class
  2. Without using Voucher Class

For this you need to have Cash/Debtor Ledger, Sales Ledger, Output VAT Ledger, Stock Item (optional), and Sales Expenses Ledger (optional). In the first method you can directly make the entry where as in the second method you need to create Taxable Sales Voucher Class by altering Sales Voucher. You can get article about Voucher Class creation and difference between there 2 method from How to create Taxable Sales Voucher Class article.

VAT @ 14.5% Sales Voucher Entry With Freight Charges Image

After the brief introduction let me get you to the Taxable Sales Voucher entry.

  1. Load your Company where you have configured VAT and want to make purchase voucher entry.
  2. Get the Gateway of Tally screen.
  3. Select Accounting Vouchers under Transactions.
  4. Click on F8: Sales button in Button Area.
  5. We have created a Voucher Class for this so select the concerned Voucher Class such as Sales @ 5%. You can see the predefined format as per your Taxable Sales Voucher Class restrictions.
  6. Enter the Sales transaction date 26-3-12.
  7. Select the Customer Name from the Sundry Debtors's List.
  8. Select the Stock Item from the List.
  9. Given Number of Quantity, and Rate of the Stock Item excluding VAT.
  10. It automatically fills the amount columns of Stock Item Total Value and Input VAT @ 5% Amount Value.
  11. Directly go to provide the Sales Expenses if you have by pressing Entry Key.
  12. Give the Expenditure amount such as Freight Charges.
  13. And give the narration if required.
  14. and finally accept.

VAT Purchase Entry using Voucher Class Including Freight Charges


Taxable Purchase voucher entry can be done using two methods in Tally ERP 9.

  1. Using Voucher Class.
  2. Without using Voucher Class.

For this you need to have Cash/Creditor, Purchase @ 5%, Input VAT @ 5%, Stock Item, and Purchase Expenses Ledgers. If you are maintaining account without Inventory then leave the Stock Item creation and the Purchase Expense Ledgers is an optional

Purchase Voucher Entry with VAT @ 14.5% using Voucher Class - Image

In the first method you need to create Taxable Purchase Voucher Class by altering Purchase Voucher where as in the second method you can directly make the entry. You can get article about Voucher Class creation and difference between these 2 method from How to create Taxable Purchase Voucher Class article.

After the brief introduction let me get you to the Taxable Purchase Voucher entry.

  1. Load your Company where you have configured VAT and want to make purchase voucher entry.
  2. Get the Gateway of Tally screen.
  3. Select "Accounting Vouchers" under Transactions.
  4. In the Button Area select F9: Purchase button.
  5. You can see a button with a name having either As Voucher or As Invoice. If you see As Invoice button click on it.
  6. We have created a Voucher Class for this so select the concerned Voucher Class such as Purchases @ 5%. You can see the predefined format as per your Taxable Purchase Voucher Class restrictions.
  7. Enter the purchase transaction date 16-7-13.
  8. Here i have Purchase Invoice Number as RD1256 dated 16-7-2013. So, i am giving it in Ref: as RD1256 and this is an optional element.
  9. Select the Supplier Name from the Sundry Creditor's List.
  10. Select the Stock Item from the List.
  11. Give Number of Quantity, and Rate of the Stock Item excluding VAT.
  12. It automatically fills the amount columns of Stock Item Total Value and Input VAT @ 5% Amount Value.
  13. Directly go to provide the Purchase Expenses if you have by pressing Entry Key.
  14. Give the Expenditure amount such as Freight Charges.
  15. And give the narration if required.
  16. and finally accept.

VAT Adjustment Voucher Type Class


Tally ERP 9 providing the automated VAT Adjustment entry for it's user by just creating a Journal Voucher Class, which is know as VAT Adjustment Class. To do so you need to alter the Journal Voucher. Most of you would know why need to create this class? We would get the same Accounting Treatment for Sales Tax even we don't use the VAT Adjustment Class. To let my doubt clear today i contacted the Tally Solutions regarding this. After half an hour negotiation with the executive i got that we won't get the result in various VAT Return Forms if we don't use the VAT Adjustment Class.

Image: VAT Adjustment Class in Journal Voucher in Tally ERP 9- 2

  1. Open Tally ERP 9 Accounting Package Icon from your Desktop or from Programs menu from Start button.
  2. Load your Company for creating VAT Adjustment Class in Journal Voucher.
  3. Select Accounts Info option under Masters from Gateway of Tally screen.
  4. Then click on Voucher Types.
  5. Click on Alter and select the Journal from the list of Voucher Type.
  6. Straightly come under Name of Class on your right hand side in Voucher Type Alteration screen.
  7. Type the name as VAT Adj. Class or your give the name as your wish and press Enter Key.
  8. In the next screen you need to enable Use Class for VAT Adjustments option by selecting Yes.
  9. And finally accept the changes by pressing Entry Key untill you get out of the screen.

So, it is recommended to create a Voucher Type Class for VAT Adjustment in Journal Voucher. So, I take the privilege in this regard and written the points in step by step below.

Voucher Type Class for Sales @ 5% VAT


It is the error driving method that directly entering the Sales Voucher entry for VAT Calculation in Tally ERP 9. While selecting appropriated VAT/Tax Class from the list of Tax Classes, the Data Entry operator would be tempted to select the wrong Class in a hurry. Even he would select Sundry Creditor instead of Sundry Debtor due to ambiguity. It would lead to the wrong Tax Filing and wrong Accounting Maintenance. So, It is better to make this work some what easier to filter the required classes for each and every Taxable Sales. Tally ERP 9 has come up with a solution called Voucher Class. Here you can restrict the Ledger and which aromatically restricts the VAT Classes. And even we can restrict to display only Sundry Debtors.

Image: Taxable/TAX/VAT Sales Voucher Class in Tally ERP 9

Voucher Class creation can be achieved with a simple alteration to the Sales Voucher. For this i am creating a Sales Voucher Class for handing Sales @ 5% VAT/Tax. Follow the following points step by step.

  1. Open Tally ERP 9.
  2. Load or select the Company for which you want to create Voucher Class.
  3. Select Accounting Info under Master.
  4. Voucher Types.
  5. Alter.
  6. You can see list of existing Voucher Types. Select the Sales.
  7. Directly come under Name of Class on your right hand side in Voucher Type Alteration screen.
  8. Give give for the Voucher Class for example Sales @ 5%.
  9. After giving the name press entry you will be direct to a screen where you need to enter the following information as per your requirement.
    • Under Exclude these Groups select the appropriate Account Groups which you want to restrict during voucher entry.
    • Under Include these Groups select the appropriate Account Groups which you want to allow during voucher entry.
    • for Default Accounting Allocation for each item in invoice option select the appropriate Inventory Purchase Ledger from the list here i am taking Sales @ 5%.
    • And you need to select VAT Ledger for that so you can select VAT/Tax Ledger such as Output VAT @ 5% under Additional Accounting Entries to be added in invoice. If there are any additional charges like Freight, Labor Charges are there you can select them as well under this option.
  10. Finally Accept the changes.

Voucher Type Class for Purchases @ 5% VAT


It is the error driving method that directly entering the Purchase Voucher entry for VAT Calculation in Tally ERP 9. While selecting appropriated VAT/Tax Class from the list of Tax Classes, the Data Entry operator would be tempted to select the wrong Class in a hurry. Even he would select Sundry Debtor instead of Sundry Creditor due to ambiguity in the name. It would lead to the wrong Tax Filing and wrong Accounting Maintenance. So, It is better to make this work some what easier to filter the required Vat Classes for each and every Taxable Purchase. Tally ERP 9 has come up with a solution called Voucher Class. Here you can restrict the Ledger and which automatically restricts the VAT Classes. And even we can restrict to display only Sundry Creditors.

Image: Taxable/TAX/VAT Purchase Voucher Class in Tally ERP9

Voucher Class creation can be achieved with a simple alteration to the Purchase Voucher. For this i am creating a Purchase Voucher Class for handing Purchase @ 5% VAT/Tax. Follow the following points step by step.

  1. Open Tally ERP 9.
  2. Load or select the Company for which you want to create Voucher Class.
  3. Select Accounting Info under Master.
  4. Voucher Types.
  5. Alter.
  6. You can see list of existing Voucher Types. Select the Purchase.
  7. Directly come under Name of Class on your right hand side in Voucher Type Alteration screen.
  8. Give give for the Voucher Class for example Purchases @ 5%.
  9. After giving the name press entry you will be direct to a screen where you need to enter the following information as per your requirement.
    • Under Exclude these Groups select the appropriate Account Groups which you want to restrict during voucher entry.
    • Under Include these Groups select the appropriate Account Groups which you want to allow during voucher entry.
    • for Default Accounting Allocation for each item in invoice option select the appropriate Inventory Purchase Ledger from the list here i am taking Purchases @ 5%.
    • And you need to select VAT Ledger for that so you can select VAT/Tax Ledger such as Input VAT @ 5% under Additional Accounting Entries to be added in invoice. If there are any additional charges like Freight, Labor Charges are there you can select them as well under this option.
  10. Finally Accept the changes.

Specific Solo Proprietorship Deed Needed?


License renewal of any kind is a common practice, which require some document proofs and deeds. Like that way this month our company Seed License ought to be renewed, as it expires in a couple of months. In these two year of my experience in Seed Business prospect, i headed to submit the Proprietorship/ Partnership Deed. I couldn't find such a kind of legal document in the office, even the our proprietor has't been prepared since the establishment of the firm. As per my knowledge i knew that there must be a notarized document in the Stamp Paper. I had seen before agreements which stands between two or more parties. Like that way in case of Proprietorship it stands on only one person.

Proprietorship Deed Format

Indeed, there is no need to prepare any kind deed for proprietorship firm, if has any certificate from the Center or State Government. Any document gained from the central government like Income Tax Returns, Central Government License for carrying business like Central Seed Licenses; State Government issued certificates such as VAT Certificate likewise certificates; or Local Authorities issued licenses like Office Registration document can be used instead of the Deed.

However, you can prepare one on your own if asked explicitly. Proprietorship Deed is a document affirmed by owner of the business and that explores the following point to the reader.

  1. In the first Paragraph it tells that Where, When and by Whom it has been executed.
  2. The next step informs the the Name and Style of the Business, Registered Office Address, and what kind of the business the firm deals with.
  3. How many people are involved in the established of the business as well who did the financial contribution.
  4. Finally you need to mentions your business running factors like the Initial Investment, Borrowing thereafter, authorized person to sign the ledge documents, maintenance of the books of Accounts and closing and opening dates of those books for the new fiscal year, Current Account in the name of, Decision Making, Death or insolvency terms, any other merits and Principles of the organization.

This is how the Sole Proprietorship Deed must be prepared. Here the specimen of the document has been provided for your understanding

Proprietorship Deed Format

For registration of the deed it is recommended to consult the notary or legal adviser, as the amendment of rules would be vary based on the location.

Report an Error to Google Adsense Team


In the earlier article i promised you that i tell you how to send an error report to Adsense Report? I was searching to inform the Adsense Team about the Adsense Report mistake which took place in April 2013. It was drastically collapsed my Adsenes for Content Host in April 2013, which i revealed you in the Adsense Mistake in April, 2013 article. Regarding that i posted a comment in the Google Product Forum which i told earlier itself. But, i just don't want to stop from there i wanted to inform the adsense team, But how? Then i found Feedback in Google Adsense Page.

You don't need to search the thousands of search results from Google Search Engine, just open your Adsense Account, from the Home page itself you can send the feedback to the Adsense Team.

You can find the Help option on the top right corner of your Adsense Home page as shown in the above image. just click on it. And you will find the search box for your solutions about Google Adsense or can read the Suggested Article written by the Team. Even after the long search in those page, you couldn't find your way for the problem. The you can simply send a feed back about the mistake by clicking on the Send Feedback link.

Before sending the feedback to the team please open the page where you are getting the mistake after that select this option for better understanding of your problem. After that describe about the problem in the page, even you can highlight a specific area in the page by Dragging on it. So, that Adsense team can better understand about your problem.

Finally you can see a confirmation message regarding the submission of your feedback. Google won't replay you regarding your query as it get a lot of feedback from the publishers.

Wrong Adsense Report, Since April'2013


Dear Adsensers, it is really a big mistake done by the Adsense Team since April, 2013. Might be the reason that the system maintenance or something else going in Google Adsense. Upto last month my adsense account was getting a fail earnings from Hosted Adsense for Content. And this is the report of my last month i.e. March, 2013 report.

Adsense for Hosted Content Report Mistake in 2013

As you seen the above report there is no Estimated earning for Adsense for Hosted Content, but adsense shows the Adsense for Content and Adsensense for Search correctly. Regarding this issue CFWheeler has posted a Question in the Google Products Forum. I have joined this and some many are facing this kind of problem as well.

Before April' 2013 there is no any mistake by the Adsense which reveals the below report.

Adsense for Hosted Content Shows correct before April'2013
In the above March Report you can see the correct Estimate Earnings for Adsense for Hosted Content. I hope Google would solve this mistake soon for the better publishers society. And apart that i have send a feed back to the Google Adsense Team you find that how i sent in the next article How to Send FeedBack to Google Adsense Team.

About VAT (Value Added Tax)


A Value Added Tax or “Value-added” Tax is an acronym for VAT. It is a form of consumption tax which is collected ultimately from the final consumer on the purchase price. The Manufacturer or Dealer remits to the government Tax on "Value Added" for selling price over the produced or purchased material or services cost plus selling & other costs. So, the "Value Added" to a product or service by the Businessman is the sale price charged to its customer, from that of the seller, it is a Tax only on the "Value Added" to a product, material or service.

History of VAT

Actually the concept of VAT was planned by Mr. Wilhelm van Siemens in 1918. But it was came into light by Mr. Maurice Laure, the Joint Director for French Tax Authority. He make it into effect since April 10, 1954. Initially it was implemented over giant companies later on eventually it has been spread-ed to all over the business sector. In France, it is the most important source of state finance, accounting for nearly 50% of state revenues.

How VAT is Distributed in Different Stages

The final consumer of product or service can’t gain the recovery of VAT on Purchases, but Businessmen, Organizations, Companies, Government Bodies can get the recovery of VAT on the product or service that they buy in order to produce further goods or services that will be sold to yet another counterpart in the supply chain or directly to a personal end-consumer.

Tax in the concept of VAT is levied at each stage in the economic chain of supply of goods or services are the constant fraction of the valued added by a business, rather than by the state. In this way, the total tax levied at each stage in the economic chain of supply is a constant fraction of the value added by a business to its products, and most of the cost of collecting the tax is borne by business, rather than by the state.

Hence, with the VAT implementation every one ever gets profit over the purchase cost of the goods or services has to bear only a fraction of amount as VAT over the profit not on entire selling cost.

Savings Bank Account (SB) Opening Process


Every Bank either the Commercial or Centralized/Nationalized bank follow the most of the common credentials for the Opening an Account of an individual in its bank as per guidelines by the Reserve Bank Of India. Having a Savings Account is a most required thing for the common person to gain financial reservations from the government such as pension.

Why Do i need a Bank Account

There must be need to do any thing ever for the account opening in a bank. You need to think of the necessity of the Account. Do you want make some savings in a secure place? Will your father has to travel miles of distance to give the college fee? Is your company paying only Account Pay Cheque for your work? Like this every might be in a situation to get the benefit of the bank. So, first check your-self is it mandatory for your a Bank Account?

Financial Instruments like Cheque Book necessary

In this globalized society there are a lot of financial instruments available for the people needs for such online shopping, buying petrol at a fuel station using Debit/ATM Card, paying the Insurance Premium with a Cheque. So, there will be additional charges for such instruments. Different banks charges different fees. In centralized banks you will get a passbook with which you can withdraw amount for a free of cost, where as in corporate bank you need to use only cheque or ATM Cards to withdraw the amount for them their banks charge annual fee.

Take Necessary Documents for Account Opening

You need to take lease an Identity proof and a Residence proof and few (2) Colour Passport sized Photographs of you.

Residence or Address Proof

It represents the location where you are living in. If you don't have any residence certification you can get the Residence Certificate from the Mandal Revenue Office or some separate government organizations, who issues the certificates on behalf of the MRO, Gram Panchayats like Mee Seva in Andhra Pradesh state. An Address proof can any of the below.

  1. Electricity Bill
  2. Municipal Bill
  3. Ration Card or such kind of the cards issued by the state government.
  4. Other Bank's last three months statement.

Identity Proof

Identity proof tells that the person is the citizen of the country and he is the unique. You must get from the statement government but it is complecated go have. In common practice central government issues some identity cards to the people then only we have get it. Later is quite impossible to have. Like Aadhaar Card. An Identity proof can be any of the below.

  1. Electoral Card issued by the Election Commission of India.
  2. PAN Card issued by the Income Tax Department.
  3. Driving License issued by the Regional Transport Authority/Officer.
  4. Aadhaar Card issued by the Unique Identification Authority of India.

Approach Bank Officer

Now banking information for account opening; such as minimum balance at bank, annual charges are open to every through its notice board and media. So, select the choice of your bank to open your account which meets your financial needs and banking services. Appeal the officer for the Bank Account Opening Form/Application. Don't forget to keep your ID Proof.

Complete the Application Form and enclose the documents.

After getting the application form fill your personal details like name, address as show in the ID Proof and provide the financial details for the interest of the bank. As well make necessary claim for financial instruments like Cheque Book. As well you need to get the specimen signature of the existing account holders as an introducer for you to the bank. The introducer must belongs to the same bank, yet having account in different branch. So, ask him to sign in the specified area in the form for the interest of the bank.

Take back the completed Proposal form to the Banker

The Bank Officer will verify your Proposal form against the documents and clears your application for the account opening if all the information is met as per bank needs.

Deposit Initial Amount for Account Opeing

After verification you need to deposit the initial amount. This amount varies based on the instruments and bank type you choose. Usually 500 in normal case, with ATM 600, if you want cheque book as well you need to deposit 1,000 Indian Rupees in your account. After that you will be given the Passbook. Some commercial banks will send you monthly statement to your address they don't use the passbook.